At Staff IT UK we know it is cheaper to get your current customers to buy repeatedly than it is to find new customers. The price of advertising, monitoring clicks and conversion rates, means the true price of getting new business is always going to be high. However, this article will help outline five ways you can use your existing custom base to help drive sales.
Customer Retention – What you need to know?
The geeky bit of business management argues that customer retention is the total sum of different activities businesses undertake to increase the number of repeat customer activity in order to increase the profitability of the existing custom base. This process is called customer retention. There are lots of diverse strategies, some successful and some not so.
Let’s find out how you can generate more sales from current customers.
One – Understand how much a customer “costs”
By understanding how much it costs to “buy” a new customer, you can better understand how your budget can spread and how you can leverage both profitable repeat business whilst still exploring new avenues with new potential clients. It is about understanding the cost-benefit of marketing in relation to your business and your current custom base.
Two – Respect your customer database
One of your biggest assets, when running a business, is your customer database. You need to use it sparingly when managing on-going repeat business – you want your customers to come back to you because they get a defined benefit from your products but you don’t want barrage them with deals and offers. Protect the database, build it and communicate pro-actively with your base with respect being a central tenet of the relationship.
Three – Communicate by being more “Personable”
When you send marketing materials to your current customers, you need to make sure you send it with a touch of personalisation because these clients underpin your business. You need to show respect and by showcasing respect in your marketing materials you can illustrate the values your company follows.
Four – Make it easy to get repeat business
Always make sure the “barriers” that exist when purchasing from your business are minimal when dealing with repeat customers. You could do this by asking them what would be easier for their monthly purchases? Different billing models, different delivery options. Whatever it is, and if it doesn’t impact your profitability, do it! Make them happy and they’ll return – as you well known.
Five – “Under promise and over-deliver”
Always make sure you deliver on-time and as per the customer requirements. This is how trust is built and how repeat custom is generated. By under promising to your clients and over-delivering, you can “wow” your clients who will of course talk to other businesses – the power of word of mouth is massive in this regard.
Six – Metrics are KING!
Always measure everything you do – offer loyalty or referral deals – and make sure that you place Return on Investment (ROI) at the heart of your monitoring. You need to make sure the numbers match your endeavours and your expectations. Make sure you keep the numbers coming in and, more importantly, that you heed what they tell you.