Most business operators have no idea of the true value of their customers!
Do you know how long your average customer stays as a customer and how much the ‘average customer’ spends with you?
By knowing this you can determine what a customer is worth to you – what you can afford to spend on marketing and most importantly, what it’s worth to retain your customers for longer.
If your business has these problems:
• ‘Chase exhaustion’ because of constant chasing for new clients
• A poor level of customer retention and repeat business
• Customers only making partial use of your services
• Customers constantly haggling over price
You need to know there is a better way!
You’re likely to be failing to capitalise on the ‘Lifetime Value Potential’ of your clients. You need to put greater effort into customer retention.
Better customer retention translates into:
• More repeat business
• Less price haggling
• Lower cost of sale
• More customer referrals
• Greater profits
• Greater business value (goodwill)
• And a more rewarding place in which to work!
Dan Kennedy, internationally recognised marketing guru (website dankennedy.com) says:
“In business to business marketing many companies make the huge mistake of having all customer contact go through the sales representative. This leaves the customers vulnerable to theft if the representative jumps ship to another employer.
“Regular communication direct from the business to its clients is essential. I strongly recommend the use of a regular newsletter.
“Every business should have a newsletter not only for customer retention but simply because if you communicate with your customers you’ll do more business.
“If a customer or prospect isn’t worth spending a few dollars on each month to sustain the relationship, then get him off your list. If none are worth that, get out of business.
“Used properly the customer newsletter is the best marketing tool you’ll ever own”.
Does your business really provide
its customers with what they want?
Are you aware: 71% of customers say shortly after buying, they’d buy from the same supplier again – but just 11% actually do? (Saatchi & Saatchi).
The most common reason for customers moving to another supplier is because they’ve come to the conclusion their supplier has become indifferent to them.
- Most customers actually want an ongoing, relationship with suppliers – provided there isn’t constant pushing for add-on sales.
- They like to validate their purchase, and who they do business with.
- They love to be recognised and appreciated by their suppliers.
- Ongoing relationships remove their stress of having to find another supplier.
International marketing agency, Saatchi & Saatchi, and marketing legend, Dan Kennedy both strongly recommend businesses use customer relationship newsletters as a means of retaining their customers.
Dartnell Research found well produced newsletters have a minimum of 4 times the readership of advertisements with readers finding them more believable.
Research by Standard & Poors found
- 92% of people receiving specific interest newsletters read at least some issues; 83% read most or some articles with 84% finding the information useful.
- 72% saved articles for future use; 74% visited the provider’s website; 60% passed on an article to a friend and 40% called for more information.
A newsletter could be an extremely useful tool for your business – helping you to have long term customer relationships, rather than just “one night stands!”
Customer relationship newsletters:
The difference between a long term relationship and a ‘one night stand’