Many demand generation programs have the same end goal: new customer acquisition. Whereas there is nothing wrong with gaining new customers, far from it, this should not deviate the attention from a far more crucial endeavour: keeping customers happy.
According to recent research, numbers show that it costs seven times more to attract new customers than it does to keep them. Ask anyone in Sales and they’ll tell you all about it.
The formula for successful business is to have a smart retention strategy to turn new customers into long-term customers. To shift the focus from acquisition to retention, consider:
- Power your CRM.
Do not work on random acts of marketing. Understand the touchpoints and interactions with each customer is critical to ensure you can best serve their needs.
- Have strong retention strategies.
Focus your attention to the right customers by providing the support they need. If you are in a Service industry, your Account Management team is just as important as your Sales Dev. Be willing to put your budgets in developing the right support matrix. Focus on service and make it a priority in the entire organization.
- Measure customer lifetime value.
If you do not know the value of what you have, you’ll never be able focus on the customers that matter. Focus on revenue and margin and not in volume of leads. At the end of the day, your company P/L does not have a line for ‘number of leads’.
- Communicate frequently.
Emails and social media are very good ways to keep in touch. Remind customers of upcoming events, or drop them a simple note when you feel there is something worth for them to know.
With these 4 strategies, you can transform your business and its focus from merely chasing new customers into a full service organization that will excel at retaining existing relations.
Add to the mix a continuous process of new ideas and value solutions and be sure to see the results come in your direction.