Are You Working Too Hard to Find New Customers?
One of the greatest thrills in business is acquiring a new customer, but it is surprising how many businesses are so caught up in the excitement of acquiring new customers that they do not spend enough time or money on unlocking the value of their existing customer base. It is amazing how often businesses fail to regard their existing customers as one of their most valued assets. I have seen this over and over again with a variety of businesses; they spend time and money on lead generation programs and send sales reps out to prospect and find new business, but do not keep in touch with their current customer base.
Look at what sales have become. There is not much difference between products, so we have to provide something else. That, “something else” includes adding (and communicating) value and building good relationships.
A Valuable Resource Worth Preserving
Think of your existing customers as an investment, like a block of precious gold. If customers are treated like gold, they will shine for you in the marketplace with rave reviews about your company. They become as valuable as your sales force in telling others about why they should shop with you for their needs. They will bring you new customers and help grow your business for you.
Four Important Facts
#1: Most businesses invest too much in chasing new customers and too little in staying in contact with – and doing additional repeat business with – their existing customers.
#2: The satisfied customer is motivated to purchase again, purchase more and purchase something different.
#3: It costs less to motivate a current customer to purchase again than to acquire a new customer.
#4: Customers switch vendors because a new competitor is paying more attention to them than you are.
I’ve rarely seen a business that could not grow and improve through increased communication to present customers.
Here is a Real Secret
Give them what they want. This statement is so basic to doing business that you would think it could not be a secret. However, according to customers, this simple concept is often missed. We often assume that the only things customers want are low prices or on time delivery. Yes, they want these–but they may also want things like having their invoices in a different format to make it easier for their accounting people. Or perhaps they want to hear about new products and services to allow them to plan more efficiently.
These customer “wants” may mean we have to change our way of doing business or that employees will have to go the extra mile. The real customer want list may be made up of small things. Learning how to honor the “small” things customers want is what has made businesses such as the Wal-Mart chain a success. They give their customers what they want…from flexible shopping times, to product selection, to easy no-hassle returns. Give your potential and existing customers what they want and they will give you what you want–increased sales.
The Cost of Losing Customers
Experts estimate it costs six times as much to get an unhappy customer back as it does to keep a satisfied one on board. Competitors grow more sophisticated and aggressive by the minute, not only competing for new customers but also attempting to take away your present customers.
The benefits of staying in touch with current customers will pay off time and time again. Keeping in touch means keeping loyal customers. Use any and all means possible: telephone marketing, fax and email marketing (with permission) and the old standby – but very effective – targeted direct-mail marketing.
The Benefits of Keeping in Touch
Staying in touch pro-actively on a consistent basis by phone with current customers has many benefits, including:
- Finding additional product and service needs,
- Reaching out to customers who may be unhappy with some aspect of your products or services and
- Retaining more customers, rather than losing customers who quietly walk away and find a new vendor.
How would you react if you got a personal “thank you” from a business several days after you spent money with them? You would feel good and probably want to do more business with them. Give that same feeling to your customers. They will reward you with more business – and a flood of referrals.
Think about this quote from Michael LeBouef, Professor of Management at the University of New Orleans: “The big bucks aren’t in making customers; they are in keeping customers.”
About The Author
Ann Barr is a telesales marketing success coach with a passion for teaching. She loves helping people who are starting out in new telesales careers and working with experienced sales reps who are looking for new ideas and tips. In addition to presenting monthly e-classes, she writes and edits direct-mail marketing letters and emails for clients. Sign up today for Ann’s free Weekly Sales Tips and get marketing tips and ideas to increase your sales!
6 Responses to “Are You Working Too Hard to Find New Customers?”
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Ooohh, You certainly deserve a round of applause for your post and more specifically, your blog in general. Very high quality material. ;-)
Thank you for visiting. Glad you like the post!
You made some good points there. I did a search on the topic and found most people will agree with your blog.
I appreciate your comment. Come back again soon!
Very good blog and info…..keep up the great work..
Thank you, Lizabeth. I’m glad you like the blog!