Everyone knows that in order to make money, you need to have customers. And everyone knows that it’s much easier to sell to existing satisfied customers than to find and persuade new customers to buy from you. According to Marketing Metrics, it’s actually up to 80% easier to keep an existing customer than to find a new one.
Surveys show that the average business loses about 10-20% of its customers annually.
The Rockefeller Corporation did a study about why customers stop buying from one company and started purchasing from a competitor. What they learned is surprising…and illuminating.
Almost 70% leave because they don’t believe that you care about them as your customer! Notice what’s NOT mentioned…price or even quality. It’s a customer’s perception that you are indifferent to them.
Over half of all companies do nothing or very little to regain these wayward customers and consider them lost. However many of these customers can be won back and deactivated
On average, businesses have a 20-40% chance of getting these customers to buy again. Compare that to the studies that show that we have only a 5-20 percent probability of making a sale to a new prospective customer. With increasing media distractions and competition both on and offline, we can easily see the payoff in keeping and marketing to customers who have already shown their loyalty by making a purchase or purchases from us.
We can increase our odds of getting customers back purchasing from us again by increasing our value to them through thoughtful communication.
It’s been said that a happy customer will tell one to two friends about their experience but a dissatisfied customer may tell 10 or more!
So, how can we keep more of our existing customers happily buying from us again and again?
With our existing customers we want to begin to let them know how much we appreciate them. Customers who don’t feel valued can be lost. Loyal customers are hard to steal!
Here are a few ideas to use with your existing customers to help them “feel the love”.
- Send birthday and Christmas cards to your customers. An e-card is good, but a “real” card that your customer gets in the mail is much better! Because many businesses communicate with their customers electronically, a physical card will have a greater positive impact.
- -Start a birthday club where you offer a discount or gift to customers on their birthday in return for them giving you the information.
- Ask them what’s most important to them. You can use social media to do this or email them a simple survey. www.surveymonkey.com is a great tool for this. Sample questions can include finding out their preferences on subjects like price, how much personal service they prefer, discounts, promotions, frequency of contact, latest news and product alerts, favorite products, products they are curious about, etc
- Schedule online and offline customer appreciation day events. Use themes such as holidays, customer anniversary dates, VIP first look launches and more.
Stay in touch and engaged with your customers. Be sure to personalize thank you emails to make your customers feel valued, important and appreciated.
So, what can we do to re-engage customers we have lost?
One great strategy is to develop a Customer Reactivation Letter.
First, go through your customer list and write down the names of customers who haven’t ordered in the last few months.
Create a letter that you will personalize for each customer. In your letter, let your customer know that you miss them as a customer and that you’d like to have them back.
Here are some things you can include when customizing each letter from it’s generic form.
State the reason you are writing. It can be to update your records, re-launch an aspect of your business or let the customer know they qualify for a discount.
Add a photo of yourself to the letter. People like to do business with people they know, like and trust. A smiling photo of you helps you accomplish that goal and let’s customers see who they are doing business with.
Look through your customer’s order history and see what they have purchased. Ask if they’d like to reorder and offer them a promotion or discount fir coming back to purchase from you. Point out the benefits if reordering.
You can include testimonials from satisfied customers which you can get from your other customers or off the company website.
Consider including a sample of their favorite product and possibly a sample of a complimentary product.
Make all offers time-sensitive. Deadlines help promote a sense of urgency.
Keep your communication personal yet professional and by using some of these tips, along with a renewed commitment to good customer service, you can expect to re-engage some or many of your customers and have them ordering from you again, resulting in higher profits for you.
Sue Mazza, President and CEO of SuccessfulYou, Inc. has dedicated herself and her business to helping people move from where they are in their networking business to where they want to be.
She teaches her teams to take simple, consistent action to overcome fear and self-limiting beliefs that have held them back in achieving success in their business.
Through workshops, live presentations, coaching classes and recorded media, Sue brings her more than 20 years of experience growing and international network marketing career and business to her clients and team. Sue offers them solutions and practical techniques to grow their down-line and sales as they develop the skills, beliefs and attitudes necessary for them to make a 6 figure income in their business.