The Value of Existing Customers

Many of you may have heard the “80/20 Rule” when it comes to sales, meaning 80% of your business comes from 20% of your customers.  Plus, it’s 6 to 7 times more costly to acquire a new customer than it is to retain an existing customer.* So in a time of tight budgets and limited manpower, your lowest hanging fruit on the sales tree is your existing customers!

It’s all about implementing a “relationship strategy” so your customers will keep coming back for more.  Customers will then become your biggest advocates for new business and networking referrals.

So what’s a “relationship strategy?”  According to Becky Carroll, author of “The Hidden Power of Your customers,” she’s termed the acronym ROCK:

  • Relevant marketing:  know your customer and what’s important to them
  • Orchestrated customer experience: drive a positive user experience in every touch-point of your business
  • Customer focused culture:  everything you do should circle back to the customer
  • Killer customer service: provide unmatched customer support

In her book, Ms. Carroll does a case study of  Zappos.com, an online company who does a phenomenal job understanding and servicing their existing customers to drive more sales.  Check out a short video done by the Social Media Examiner where Ms. Carrol highlights the key tools in her book.

And, I’d like to add to this by highlighting our strategy and customer-centric philosophy which is simple, yet effective:

  • Know who you are and stay true to your message:  what makes you different and why should someone buy from you
  • Quality vs. quantity:  Focus on your ideal clients and keep them coming back for more
  • Know your competition:  Always know your competition and clearly differentiate yourself
  • Know your customers:  Know their demographics, where they live and play, and market in those medias…If your customers are senior citizens, you probably don’t need to be tweeting!
  • People connect with people: People buy from people they like…it’s all about the overall “human” experience
  • And more…

In a world of e-relations, social media remains king and should be an integral part of your relationship strategy.  It remains as one of the most efficient, timely and diversified ways to communicate, query and build communities within your customer base, as well as prospects.  However, it’s just as important to integrate face-to-face time with customers, via seminars, dinners, etc. and remain ethical and moral in every aspect of your business.  It’s the culmination or “orchestration” of all these experiences that increase customer loyalty and sales.

Be prepared though.  As with any successful endeavor, it requires marketing savvy, consistency, frequency and dedication.  If you find that time-constraints or expertise are holding you back, you can outsource your social media to a marketing consultant or firm, like Exceller Marketing.  We can create, launch and train you to manage, or we can handle it all…the choice is yours.

We welcome the opportunity to provide you with a FREE consultation.

Best regards, until next time!

Kathy Argyros
Owner and Chief Consultant
Exceller Marketing, Inc.

Exceller Marketing specializes in affordable, high-impact marketing communications and business planning for small businesses in Westchester County, NY. Our goal is to empower small businesses with the same ingenuity as big corporations, but at a fraction of the price.

*Source:  Flowtown.com

About Kathy Argyros

I'm Owner and Chief Consultant of Exceller Marketing. We specialize in affordable, high-impact marketing communications and business planning for small businesses in Westchester County, NY
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