I read in a book once that it costs 1/10 the amount to market to an established customer as it does to a prospect. I tried to put this in perspective of my particular situation and came up with the following logic: If I focus my marketing on the customers that are already loyal to my company, and either up-sell them or give them an exceptional experience of value and service it will pay off just as much or more. I know what you’re thinking: “how does it make any sense that just trying to market to customers that would’ve come to your business anyways rather than focus on new potential customers?”. My answer is that marketing to customers pays off both in the short and long term. In the short term it pays off because I am up-selling these customers. So now instead of buying their typical Monday morning drink from me, they are also adding a special new treat or feature on to their order. Thus the average revenue per customer increases and thus the total amount in sales increases. In the long term, marketing to customers pays off because they are being provided with the most exceptional customer experience and becoming aware of our products so much that in return they do something for my company that I believe to be more powerful than anything: spread by word of mouth. Sally, who is a regular at my soda shop, is just so impressed and amazed by the continued value and exciting products and features she is getting from my company each day that she just HAS to tell her friend Cynthia. Cynthia then becomes a regular. We then market to Cynthia. Cynthia then tells Margaret…and so on and so forth. I believe the highest return on investment (short term and long term) comes from marketing to established customers as opposed to prospects.