Well you're an awesome company with amazing products and services and yet you do not know why you're the number of customers is going down. Oh yes, the sales are still happening but the lead conversion is getting increasingly difficult. How about I share with you some thoughts, practices that might help you increase your sales by 50% and yet not increase your marketing expenses.
Understand why they leave
The first thing you need to look at is how many existing or old customers have not done business with you again. In most probability this stack is high enough to make you realize that your business has not yet developed the relationships with these customers and overlooking this has cost your business a lot of valuable business. The under mistake is to believe that there is no maintenance and growth required for customer relationship. And the result is to find a year or two down later is what you see in your cabinet right now.
The key question is – where did all these customers go? Why have not the sales team yet heard from them in such a long time? Have they gone to the competitor? Have they stopped using the product entirely? Well, the answers depend on the kind of business you are in. Barring the B2B scenario, most B2C services and businesses do not lose customers, because the service or the product is out of use.
For an example, no one will really stop using electricity or water or pastas, or computers; now will anyone stop traveling. But certainly they will feel free to change from one service provider to the other. OUCH! That stings, does not it?
But before we start talking about what to do regarding this, let's look into some more possible reasons why the customers might not have interacted with your business
- Your pricing might have been perceived as high, or worse unfair.
- Unresolved Complaints.
- Feeling of not being valued and cared for.
Studies show that
- It takes 6 times more money to sell something to a new customer than to retain an existing customer.
- Older customers do 33% more business in terms of the money volume they spend.
- Repeat customers have 107% higher referrals than non-customers. And yet,
- Companies insist on business acquisition more than they insist on relationship retention, without the customer declares that they are leaving.
The takeaway is that to build, nurture, develop and maintain your customer relationships is the one of the best marketing strategies.
It is not too difficult to develop customer relationship, because all it means is to:
- Ensure the high quality of your products and services
- Treating customers and clients as strategic partners
- Right and customized products and services as far as possible
- Right and timely promotion
- Consistent effort to increase customer loyalty
- Impeccable standards of customer service and post – sales support
Benefits of effective customer relationship marketing
- Marketing – effective customer relationship is a very strong method of marketing in itself. Existing customers will increase your word of mouth publicity and referrals.
- Branding – If you take care of your existing customers effectively and efficiently, you will be in it for a longer haul, because you will have the support of customers who know that you're more interested in adding value to their experience and you will become a brand.
- Cost Arbitrage – Your money spent on retaining old customer is far less than your money spent on acquiring new business and then it's a financial benefit as well.