Current attrition rates seem to be reaching an all-time high. That means keeping customers current and attracting new ones is more important than ever! But exactly how do you achieve that? You are busy trying to keep your head above water, right? You are running your business, managing staff, and dealing with suppliers.
We know that you need to figure out a way otherwise, you risk your revenues falling through the floor. The risk is that new leads will dry up so as current jobs complete there are no new clients to take their place. That is unless you do something to ensure current clients keep coming back and new clients join the ranks.
When you calculate the potential value of a customer you will come to realise that:
The first sale is usually not very profitable. The costs involved in gaining and servicing a customer’s first sale are really a long-term investment. These costs include the marketing that you need to do to get them through the door.
The profits from a customer are often generated over many years. These profits come from repeat sales or from referrals. The key is to build a long-term relationship with each customer and treating them as if they will be coming back to you. That becomes harder the larger the job, of course, if you are a builder, there aren’t necessarily many clients that will return many times. BUT, these customers talk to friends, peers, and potential new clients for you…
Repeat customers are customers who are satisfied and they bring new customers to your business. These clients are your best advertisement, marketing company, and public relations firm.
They have actually used your services and if they are happy, they will recommend you to their family, friends, and work colleagues.
Repeat and referring customers should be valued. You need to ensure that they are serviced to a high standard. If you don’t do this, be prepared to lose them and all the future clients that they could have pointed your way.
Communication with existing customers is often ignored by business owners. Marketing and advertising are usually focused on communicating with potential customers. This is often at the cost of talking to the clients you already have.
Every business should be in contact with its existing customers at least 12 times a year. The potential revenue of doing this are many times the costs involved.
Research shows time and again that it is 5 – 10 times easier to sell to an existing customer compared to new customers. There are a number of benefits of an effective customer communication plan.
These include:
- Better customer retention rates.
- That means you are not continually paying large advertising costs to get new customers
- Higher client satisfaction which in turn means
- More customer referrals.
- Capacity to charge higher fees.
- When customers perceive you are providing a more valuable service due to the constant contact you can increase your prices.
How do you create a Communications Plan that Works?
The first step is to choose the goals or objectives you would like to achieve. There are a few options. Your current position will drive which is your goal for now
- more sales
- increased visibility
- higher customer retention
- higher net promoter score, etc.
Design a plan to contact your customers 12 times per year.
Write it down
Let it be known throughout your business and get other staff onboard
Don’t get side tracked with Christmas or other public holidays
Decide on how you will communicate. Our advice is to combine different forms using a combination of newsletters (email or paper), social media, and customer phone calls. Include customer visits and customer invitations to seminars or shop promotions.
You might want to consider the merits of a get-together at Christmas or on the business anniversary date. Informal gatherings are a great way to build your relationships. You can have an event and maintain professionalism. It also gives an opportunity for clients to mingle and share their great experiences!
Ensure the customer contact plan is tailored to develop your relationship and not just an exercise in annoyance. Your communications need to enhance your customers’ life if they are going to further your cause. Sending an email for the sake of staying in touch is no use to anyone, least of all your customers.
Focus on communicating benefits to them. Giving your customers relevant information makes you valuable to them. Customers do not want to be ‘sold to, but rather educated and informed.
For example, a monthly email from a retailer selling hiking equipment would focus on new hiking products and techniques. There may also be information on reviews of ‘must do’ hiking trails and ‘expert’ reviews on essential equipment. Whatever you are saying to them, make it the information that they want, even if they didn’t know!
Make sure that you understand that communication is a two-way street. Expect and encourage some kind of feedback. You should have a clear feedback system in pace so customers can communicate with you. Ensure that when they do they are acknowledged and validated. Even if they tell you something you don’t want to hear… in fact especially if this happens.
Our reaction to feedback – critical or otherwise it what lets our clients know that they are important to us. Some of the most effective communication campaigns are those where you are actually asking for feedback. Some examples of this might be:
- A new product or service launch
- A referral programme introduction
- The launch of a new website
- A request for a review for Google or social media
So, in short, make sure that you are talking to your clients regularly and in a way that is valuable to them. You could find that your need to find new clients reduces in urgency. Extending the lifetime of existing clients is an exercise that might just surprise you!
If you would like to speak to us to explore how we can help you with an effective communication plan, please, get in touch with us. We can help make sure that your current clients become the advocates and the repeat clients that help you run a more profitable business.
We will be happy to help you with a FREE Business Systems Review Session to get you going.