07 Dec CRM discount promotion to retain customers (Part IV)
You know how busy your customers’ lives can be. Many people who settle into a community and get to know their local businesses often have stable but demanding careers, develop expansive social circles, are looking to or have already begun building families, and always seem to be on the run, rarely finding time for themselves. It’s not that busy people don’t care enough, but that they often need to be reminded of what it is they would like to be doing in the first place. While these types of consumers are loyal when they like a business, there are also endless competitors, both local and corporate, pressing them for their attention (and offering lower and lower prices). Here, it’s up to every business to do what it takes to stand out.
Once a customer has initiated a relationship with a business, it becomes a business’ responsibility to cultivate that relationship and get the most out of it, in the interest of both them and their customer. So, if you have great products and services, why not tell them! By targeting promotions to your existing clients, not only can you remind them of possible appointments or arrangements than may often slip their minds to plan, but you take the tedium out of your clients having to plan and think up arrangements for themselves. Any bit of assistance helps, and not only in making sure your customers get the assistance they need, but also to ensure that they feel like they are important to you and, most of all, that they feel taken care of. That sort of trust and connection will always keep them coming back.
Sending special offers to loyal customers can not only make them feel valued, but also make it much harder for them to justify moving on to buy goods or services from another business. In accounting for the cost of discounts, it might make certain transactions less profitable, but it’s a surefire way to increase both the revenue and gross profit your business collects. Over time, however, the added benefit of building loyalty and a real relationship with your clients based both on their interests, goodwill and tangible benefits to their loyalty allow you to have steady streams of income in both good times and bad. What’s more, shoppers are looking more for discounts than ever before, so contacting your customers with outstanding offers, particularly during popular shopping seasons like the holidays, can be crucial to maintaining their attention and earning their dollars year-round!
Loyal customers are the primary source of revenue for small businesses, and it’s far easier to sell more to a repeat customer than to work for a completely new sale. The probability of selling to an existing customer approaches 60%-70%, while that of selling to a new customer is anywhere between 5%-20%. The success of any business, big or small, depends on its ability to efficiently maximize its opportunities for revenue. Before moving on to attracting more customers, businesses should do their best to build reliable and stable revenue out of the customers they already have.
Of course, a business can’t expect to grow bigger and better by simply keeping around the same old customers. Even though it often requires more effort, selling to new customers is necessary for any business to achieve outstanding growth, so watch out for our post next week, when we discuss attracting new customers through discount promotion!