Want to save your business venture money in 2011? Then work on keeping the customers you already have, instead of always working on getting new ones. It does not matter how big or small your business is, applying this works.
You’ve heard it before; it’s cheaper to keep existing customers than it is to find new ones. Most surveys say repeat customers spend, on average, 67 percent more than new ones and acquiring a customer costs five to 10 times more than retaining one. My wife may be the one with a head for figures in the family (she’s an accountant) but those figures make it plain as day to see that me and every other business owner can save money by working on our relationships with existing customers.
Here’s what I plan to do in 2011 to keep my repeat customers happy and spending money:
Communicate regularly. The e-zine, online newsletter that many internet companies employ is a widely studied, successful business model. Businesses communicate regularly with their customers by sending them free content. The frequency of the communication is not important, although the more contact with a customer the better. The e-zine business model is so successful because regular communication with customers creates trust. Customers trust you are knowledgeable and rely on you to provide them information regularly.
Pick a day or two a week and send your existing customers information related to your industry. If you have a business selling clothes, send your customers information about spring trends and new designers. The topic of your content does not matter as long as it relates to your industry and the types of products you sell. Give your customers straightforward information as well as your opinion about events and happenings relating to your business. I send my customers free business advice every Monday. The key is doing it consistently.
The important thing to do is to stay in regular contact with your customers. You want to keep your business in the fore front of their minds so they make purchases from you instead of your competitors.
Reward them for their loyalty. To make sure you maintain a lasting relationship with your existing customer, make them feel like they are valued. You want them to know that you appreciate their repeat business.
How do you do this? Give your current customers good deals. We’ve all seen advertising targeted to bringing in new customers. The deals are extraordinary. But when existing customers see those deals they wonder why they can’t get them too. Those are things that drive customers into the arms of competitors. Remember to offer your repeat customers exclusive deals and discounts available to only them. If you are offering a 10% discount on a product to draw in new customers offer your existing customers that same deal or sweeten the pot with free upgraded expedited shipping.
You can even create a loyalty program for your top customers. It’s typical to offer your best customers free shipping or expedited shipping of some kind. You could also give them sneak previews of new products and information. The goal here is to reward your loyal, repeat customers. You want them to feel appreciated so they continue to do business with you in the future.
Provide really good service. It’s good to surprise your best customers from time to time. Do something special and unexpected for them. Send them a small gift or add something extra to their order. Write a personalized thank you note to them when you ship out their next order. I like giving away free reports I write from time to time. They teach how to do something or provide information about new tools available to our industry.
Anytime you get a legitimate email from them or a phone call, return the message immediately. Don’t keep them waiting. By returning their message in a timely manner you are showing them that they are important to you.
You want to go above and beyond for these customers as they are a great source of revenue for your business. Take care of them and they will take care of you.
If you don’t give your customers good reasons to stay, your competitors will give them good reasons to leave. No matter if you are a B-to-B (business to business) or a B-to-C (business to consumer) company, it is important to remember who regularly injects cash into your coffers-your existing customer base. Treat them well and they will continue to spend money with your company. The trick is to always make them feel valued and appreciated. If you do this successfully you will save your business money because your existing customers will be the ones bringing in new clients for you because they are happy.
Good luck.
Ethan Warrick
Editor & CEO
