 Business
Relationships -
Recognizing Value in Your
Current Customer
By Wendy Zak of Words By WendyOne of the most
common laments of the small business owner is that marketing and advertising
is a necessary evil. Many companies, though, are ignoring their most
valuable resource - their past or present customers. Consider the fact that
it can cost as much as five times more to reach prospective customers than
to contact existing ones. Clearly it makes sense to do some creative
thinking about making the most of your existing contacts.
Ask yourself whether your customers might be persuaded to do any of the
following:
- Buy more of your product or service, or buy it more often;
- Buy accessories or add-on products;
- Purchase follow-up services or products;
- Up-grade, or buy different products or services;
- Recommend your company to someone else.
If the answer to any of these questions is “yes” (or even possibly) then you
should be engaging in a campaign of regular communications in which you
educate your customers, keep your company name in their minds, and motivate
them towards your desired course of action.
This on-going campaign of communication is the cornerstone of direct
marketing, whereby you are personally contacting highly targeted prospects
(in this case, your existing or past customers, or even inquirers) rather
than pepper-spraying a message to a mass audience in the hope that some may
be potential customers. It is also a concept that works for almost every
type of business from the smallest home-based company, to the major big box
stores. Think how much money Sears spends mailing catalogues to previous
purchasers. They know that, having purchased once, these are the most
cost-effective prospects to contact for future purchase. On the opposite end
of the scale, the cost, to a small business, of sending a mailing to 100 or
even 1,000 past customers is very small, and the benefits in terms of your
return on investment can be huge.
Constantly think of reasons to contact your customers. Advance notice of
sales, special offers or new products can all be woven into an interesting
story and combined with incentives for purchase. Something as simple as
ideas for new ways to use your product, or a holiday greeting, will entrench
your company name in the minds of valuable prospects.
Never send an invoice without including some small message or personal
greeting. And if you have sold a product that requires regular service or
replacement parts (such as filters), always remind your customers that it is
that time again, and that you are ready and waiting to assist.
Newsletters are one of the most cost-effective ways to keep your customers
up-to-date on your products or services. They are the perfect vehicle for
news stories, testimonials and special offers. If your newsletter contains
interesting information and tips, rather than just sales messages, it is
almost guaranteed to be read. And remember - offers aimed only at current
customers are a powerful loyalty building tool.
Even if your customers only buy once a year, the money that you will spend
contacting them every three or six months will pay dividends in repeat
business. This regular flow of information keeps your company name at the
top of their mind, and helps to establish you as the expert in the field.
A recommend-a-friend offer can be a tremendously effective way of reaching
new customers. We all love to tell others how we have cleverly found a
business which offers great service or products - especially if we are going
to receive a gift for doing so. Remember, personal recommendations have much
more credibility than unsolicited marketing materials.
In a very few industry sectors, such as home renovations or landscape
construction, it is likely that your customers will not purchase again for
many years, or possibly never again. In this instance, there is still
potential for them to recommend your service to others. Something as simple
as a gift, tastefully embossed with your company name, or a small album of
photos chronicling the work that was done, can be interesting enough for
them to display or show to visitors. And always before the work is complete,
ask if they know anyone to whom they could pass on one of your brochures or
cards. If you don’t ask, they probably won’t offer. But if you do ask, they
just may think of someone.
Finally, remember that there is a marketing tool which could cost nothing
more than your time. It is, of course, the telephone and it can be a
valuable way to spread information, or to re-qualify past customers for
future mailings or e-mailing. The particular advantage of this kind of
pre-qualification is that the prospect is considerably more likely to open
your letter or e-mail if they have spoken to you and given permission for
you to send it. If you are uncomfortable with this kind of telephone
solicitation, create a script and practice before you make the first call.
It does become easier.
One of your most important tools in relationship marketing will be your
database. If this is not already done, it is vitally important that you
build a database of everyone who has purchased from you at any time. Once
that task is complete it becomes very simple to print out a batch of
postcards or envelopes for your on-going mailing activities.
Remember, your past customers are the people who have helped you build your
company this far. Reward them for this service, tell them what wonderful
things you are doing, and they will reward you with repeat business.
Wendy Zak is a freelance copywriter & marketing consultant. She
specializes in brochures, leaflets, news-letters, sales letters &
informational articles. 403 279.3661.
wendy@wordsbywendy.ca
www.wordsbywendy.ca
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