It’s a simple, two-step process to customer retention
Step one: Capture their business
Step two: Reward their business
Why does step two get left out so often? The answer, unfortunately, is hidden.
In her new book, The Hidden Power of Your Customers, Becky Carroll blows the whistle on one of the biggest factors of poor customer retention: The lure of finding new customers.
Many companies spend a lot of time and money trying to attract new customers to their product or service. They spend a good portion of their marketing budgets on mass approaches such as advertising and direct mail. While those media have their place in finding new prospects, frequently they are not as helpful in keeping a company’s most valuable asset: Their existing customer base.
A business often feels like finding new customers is more urgent than keeping current ones. This is because the business has low customer retention and must constantly seek new customers. Do you see the problem here? It’s a vicious cycle, and no one in the mix is very happy. Least of all, the current customer, who sees you showering your time and resources on people who have yet to spend money with you.
But Carroll says it doesn’t have to bee that way:
Customers want to know that you value their business. They want to know you know how long they have been with you, and they want to feel appreciated. Showing customers that you do indeed care about them is one of the most effective ways to capture their business for the long term.
All it really takes is a little care, a little bit of attention. Carroll suggests that you send more than just bills. Ask yourself: “What are the last three communications customers received from me?” A bill, an invoice, a sales offer? Carroll then suggests you think what the customer would have preferred receiving:
- A thank-you note
- News that’s personally important to the customer
- Announcement of special deals for current customers
- Acknowledgment of their longevity as a customer
Doesn’t really seem that hard does it?
Win a Free Copy of The Hidden Power of Customers
Want to learn more about customer retention and the keys to growing your business through existing customers? You can win A FREE COPY of Carroll’s book right here on The Marketing Spot Blog. To win a free copy of the book, simply comment on this post in the comment section below. Or, tweet a link to this post including my Twitter name, @JayEhret, or post a link on Facebook including my Facebook page name The Marketing Spot. On Friday I will choose one winner and immediately send that person an autographed copy of the book. If you win you will need to provide me your mailing address. Check back Friday to see who won.
Or, you can just purchase your copy of The Hidden Power of Your Customers.
*Disclosure: Becky Carroll is a personal friend and we “posse-blogged” together for a year on the reExperience Starbucks Project. And I’m very proud of her for writing a book that celebrates how Customers Rock! Which, coincidentally is the name of her blog, and it can be found here: Customers Rock!