Power Direct Marketing: The Book
The Importance of Keeping Customers
A good name is better than precious ointment.
The most important asset of any business is its list of customers. Your customer base depreciates faster than any machine or buildingand is more valuable than all your buildings and equipment.
Your business customer base is subject to attrition for a number of reasons. Death is onecompanies go away. They fail, they fold, they merge, they move, they divideand you no longer have a customer. In most instances there is little you can do about it.
Ditto for your consumer customer base. The average move rate in the United States has remained fairly constant at around 20% annually for a number of years. Younger folks move more oftenso do those who live in apartments. With job promotions, two income households, smaller families, later marriages, and people living longer, the consumer customer is also changing. And moving.
Customers also go away because your good competition takes them from you. Your competition offers something you do nota true benefit of doing business that your customer feels is over and above what you offer.
Competition takes your customers away because of an honest product benefitabove and separate from your service, your people, your location, and other control factors. They just plain have something better, and your customer likes it. They move on.
And customers go away because of indifference by YOU! You, your company, and all your people. You fail to express interest, the touching and caring, the understanding that customers need. You are not in step with your customers. So they elect to march with a different band.
A customer costs little to maintain with regular contacts. Costs of keeping a customer are far less than costs of obtaining a new one. Some have said maintenance and service are only 10% of the cost of new business acquisitions.
Your best source of new business is your current audience of customers! They already know you. You have built a trust. Provided a service or product. Operations and finance and manufacturing and administration and sales and customer serviceall elements in providing for a customerare in place. Doing the job.
Gaining more business from your current customers is easy compared with going into the marketplace and digging from scratch. If you have a new product, try it first on your customers. A new service. Another plant. Or office. An expanded staff. Other enhancements. Upgrades. Improvements. Something truly new or different. Whatever it is, your customers are more likely to say "YES" than anyone else to your presentation and offer.
So, the best audience for your business is that group already doing business with youyour customers. Chase them, ask them to give you more of their business. Surprisingly enough, if youll ask you will receive. Especially from those who are already comfortable doing business with you.
by ROCKINGHAM*JUTKINS*marketing, all rights reserved.