Much of marketing focuses on building business, targeting new customers and reaching new markets. But customer retention is just as critical to your business’s success. According to Huthwaite International ” Statistically speaking, the cost of acquiring a new customer costs five to ten times more than retailing and existing one. Not only that, but repeat customers spend, on average, 67% more.”
Wow. that means that f it cost you $25 to acquire a new customer it is worth spending $2.50 to reach out to an existing customer. And if your average sale is $100 them a returning customer will spend on average $167.
The best way to help maintain your current customers is to offer good customer service. Here’s the trick with customer service: It goes far beyond the telephone. In today’s Internet Age, there are two important tools you can and should utilize to help accelerate your customer service and better retain customers.
E-mail marketing is one of the most effective tools for communicating with current customers. The key to using e-mail to help build customer relationships and retain business is being proactive. Start with personalized messages requesting feedback on the products/services provided. (Note: if the feedback is negative, apologixe and fix it.) Then, execute a series of follow up e-mails communicating the unique value of working with your company. Make sure what you say about your company matches your customers’ experiences.
Social media can be used in a similar manner. Begin with personal inquiry and move on to branding messages. Social media has the added benefit of being able to listen to feedback without soliciting. By monitoring social channels, you can keep abreast of what customers—both past and present—say about your company with the goal of addressing negative/inaccurate information, thanking customers for positive feedback, and addressing questions or concerns.
Digital POp Marketing is an expert at email and social media marketing. Call us for a personal plan.