“What’s the most important asset your business has?” I’ve posed that question dozens of times to business owners in various industries over the years. Sadly most have fallen short of what I believe to be the correct answer.
So that I don’t cause you any further undue stress, I may as well just let the cat out of the bag now. The answer is:
Your existing customers!
That’s right! The most valuable asset your business has, is not your store, the fixtures, not your inventory, intellectual properties, fleet of vehicles, computers and software, not even, dare I say, your employees – it’s your database of existing customers.
Establishing long-term relationships with your customers is the backbone and lifeblood of your business. It’s what enables your business to grow and profit. Many companies spend a lot of time and money trying to find new customers and very little in keeping their existing customers.
The Cost of Not Staying Connected with Customers is Real and Measurable
Numbers don’t lie. Attracting a new customer can cost 5 to 10 times more in advertising and promotional dollars than it costs to retain an existing one. Research analyst Alex Brown estimates that “U.S. organizations lose one-half of their customers every five years, and a 5% incremental improvement in the customer retention rate could have the effect of doubling profits.” It’s axiomatic that a loyal customer is many times more likely to be a source of referrals or positive word-of-mouth.
Keep Customers Connected to You and Your Brand
Direct mail and e-mail marketing will allow you to nurture your customers over time by keeping in touch on a regular and consistent basis. When implemented consistently, direct mail and e-mail marketing can be an important component in leveraging customer relationships. You’ll enjoy improved retention, and create loyalty to your brand.
It’s All about Communication
How do you get repeat business and earn customer loyalty and referrals? Take a lesson from businesses that long ago grasped the dynamics and importance of building customer relationships through on-going communication. They nurture their customer base over time by keeping in touch on a regular basis ensuring that their business remains “top of mind.”
Creating and Keeping Lifelong Customers is the Goal:
Of course you won’t keep all of your customers for life any more than you can win at Bingo every time. You can be assured however, that if you consistently and properly implement a “keep in touch” program, over time it can have a very positive impact on the growth of your business and the brand as a whole.
So what are you waiting for?
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