Are You Working Too Hard to Find New Customers?

                            By Ann Barr

One of the greatest thrills in business is acquiring a new customer, but it is surprising how many businesses are so caught up in the excitement of acquiring new customers that they do not spend enough time or money on unlocking the value of their existing customer base. It is amazing how often businesses fail to regard their existing customers as one of their most valued assets.  I have seen this over and over again with office equipment dealers; they spend time and money on lead generation programs and send sales reps out to prospect and find new business, but do not keep in touch with their current customer base.

Look at what sales has become.  There is not much difference between products, so we have to provide something else.  That, “something else” includes adding (and communicating) value and building good relationships.

A Valuable Resource Worth Preserving

Think of your existing customers as an investment, like a block of precious gold.  If customers are treated like gold, they will shine for you in the marketplace with rave reviews about your company.  They become as valuable as your sales force in telling others about why they should shop with you for their needs. They will bring you new customers and help grow your business for you.

Four Important Facts

     #1:  Most businesses invest too much in chasing new customers and too little in staying in contact with - and doing additional repeat business with - their existing customers.

     #2:  The satisfied customer is motivated to purchase again, purchase more and purchase something different.

     #3:  It costs less to motivate a current customer to purchase again than to acquire a new customer.

     #4:  Customers switch vendors because a new competitor is paying more attention to them than you are.

I’ve rarely seen a business that could not grow and improve through increased communication to present customers.

The Cost of Losing Customers

Experts estimate it costs six times as much to get an unhappy customer back as it does to keep a satisfied one on board.  Competitors grow more sophisticated and aggressive by the minute, not only competing for new customers but also attempting to take away your present customers.

Use any and all means possible to stay in touch with your customers:  telephone marketing, fax and email marketing (with permission) and the old standby – but very effective - targeted direct-mail marketing.

How would you react if you got a personal “thank you” from a business several days after you spent money with them? You would feel good and probably want to do more business with them. Give that same feeling to your customers. They will reward you with more business - and a flood of referrals.

When you develop a successful cost- effective direct mail program you’ve got an extremely valuable asset. You’ve got a system that you can use over and over again for a long time with predictable results.

The Benefits of Keeping in Touch

Staying in touch pro-actively on a consistent basis by telephone with current customers has many benefits, including:

     l     Finding additional equipment and imaging supply                                     needs,

     l     Reaching out to customers who may be unhappy with     some aspect of your products or services and

     l    Retaining more customers, rather than losing                                customers who quietly walk away and find a new                                    vendor.

Think about this quote from Michael LeBouef, Professor of Management at the University of New Orleans: 

“The big bucks aren’t in making customers;

they are in keeping customers.” u

Ann Barr is a consultant and sales trainer who has written eight books on sales and marketing.  You can sign up for Ann’s free Weekly Sales Tips  e-mailed newsletter at her web site www.sellingsupplies.com