I know it’s not sexy. We’re not tossing web 2.0 phrases around or sharing some hot, new creative aimed at a brand new target audience. In fact, this marketing truth is downright boring. Keep talking to your current customers.
Whether you are trying to increase sales or retain the sales you have — marketing to current customers is a better bet than chasing after a prospect. Sure…you want new customers. But can you afford to lose the ones you’ve already got?
Here’s a startling statistic. Nearly 70% of business lost in America is lost due to post-sales apathy.
Amazing isn’t it? We spend all this time and effort luring them to our business. We seduce them on the sales floor. We listen attentively to their problem and help them find a solution. We gave them a fair price. We smile and wave as they leave.
And then, we ignore them.
There is no hotter prospect than your current client. They know you. They liked you enough to try you once. Hopefully, they had a reasonable or even good experience the first go around. So why aren’t you talking to them? Why aren’t you telling them more about you? Why aren’t you trying to learn more about them?
The answer — the hunt is more fun than the maintenance. Most salespeople and entrepreneurs love the thrill of the chase. The win is sweeter. But, let’s be practical. The win is also more expensive and longer in coming.
If you don’t have a customer retention program …. one that turns your clients into raving fans–you need one. Make it simple, easy to implement and something you will actually do. Consistently. Start on it today. It’s that important.
This post was jogged by the discussion we’re having in the comments section of Monday’s post. Some very smart thoughts from James Hipkin nudged me to bring the topic back around.
By the way — this isn’t a recession post. This is smart business, regardless of the economic conditions. I’m just hoping that the realities of the times will make the tactic appear a little sexier than it normally does!
So — how do you continue to court your current customers? What are you doing that’s worthy of their loyalty?
Drew,
I don’t do anything sexy with my clients: I stay in touch with a monthly e-newsletter, cards celebrating special days and successes, and the occasional e-mail saying hi and asking for feedback.
Lew,
Well, then you’re on the money! As I am sure you advise your own clients — there has to be some steak to go with that sizzle. And the most important ingredient is that you actually make the effort to stay in touch.
What’s your take on loyalty programs, either for yourself or your clients?
Drew
Drew,
Thanks for the shout out.
At risk of getting all Lion King here, another benefit of keeping your focus on current customers is more efficient prospecting. For example:
- Raving fans are the best and least expensive sales force you can hope for.
- Understanding who your best customers are, and what they are looking for, means your prospecting efforts can be focused on finding more customers just like them.
Drew,
I love loyalty programs and am personally a big fan of the one’s I belong to. For my retail and travel & leisure clients I urge them to initiate them. It’s a lot tougher for B2B to come up with ones that have value. Although I am thinking about one for my consultancy.
I think as long as the loyalty programs add value, it’s great but if they have been full of hot air until now, I’d see about cleaning up your act.
If you’ve been a great vendor all along, you’ll have no problem keeping your existing customers and generating additional revenue in both good and bad times.
My take on this is: if customer retention isn’t ’sexy’ now, how can it be made to be more attractive? Yes, the chase is more exciting but there are a lot of things you can’t expect to get from a new prospect; they’re not as invested in the brand.
I think it’s easier to start a meaningful dialogue with a long-term client. By this point it’s a mutually beneficial relationship.
For instance, by introducing a ‘letters to the editor’ section in your newsletters, you could enjoy:
a) increased engagement from contacts because they have a chance to have their opinions read
b) feedback you can use to improve your mailouts and make them more relevant
This is just an idea off the top of my head – one that might not apply to every business and would probably need a little refining but it should get the ball rolling.
Affiliate programs can help you stay connected and on good terms with customers because users want to promote a product that they love too.
I support your message here and offer the addition of another truth: maintenance.
We have to perform preventative maintenance on all types of equipment and vital machinery to keep them running smooth and ensure the longest performance possible. We practice (sometimes) preventative healthcare measures to stave off deterioration. And we spend 18 years of daily nurturing to build the best adults out of our kids. Add in that we know it cost less to maintain a positive client-agency/business relationship than it does to replace said client, and it’s just plain simple math: take care of what you have.
Besides, you never know what type of power THEIR network has
Drew,
This is a great blog and something that relates completely to an aspect of our business. Could i repost it on our blog – customerid.buxtonco.com with a linkback to yours?
Thanks