Business Tips

Deborah Kohler - Sante Fe Business Advisors
debkohler@santafeadvisor.com

Value Existing Customers

The old adage “if you’re not growing, you’re dying” can mean many things.  Business owners often invest lots of time and money marketing for new customers while spending far too little unlocking the value of their existing customer base. 

Most marketing experts say it costs five-to-six times more to acquire a new customer than it does to get sales from existing ones.  So, let’s explore how to generate repeat transactions so the customer you spent time and money to get will choose your business over your competitors.

Maintain regular contact with your customers and don’t be afraid to ask them how you can improve.  A customer survey can provide lots of valuable information.  Email and e-newsletters can help you stay in touch.  A hard copy newsletter, direct mail, post cards and hand written notes also keep your business ‘top of mind.’  Know and understand what your customers really want and need to ensure your methods of communication are effective.

To generate ideas, study the variety of marketing and communication techniques used by major retailers, banks, credit card companies and others.  Determine how you might use these concepts to unlock the untapped potential of your existing customer database. 

Is your business exceptionally customer friendly?

• Is it easy for your customers to reorder?
• Do you offer the products and services your customers want most? 
• Do you regularly review your customer’s buying habits?
• Do you provide exceptional customer service? 
• Do you personalize responses to customer inquiries? 
• Do you honor your guarantees?

These techniques demonstrate professionalism and will increase positive ‘word of mouth’ and other forms of referrals.  Referrals create a steady flow of leads and sales, with low customer acquisition cost.

Existing customers are your most valued asset, so take the time and make the investment to learn what they want and need.  If you treat your customers as graciously as a guest in your home, they will buy from you again and again.

Santa Fe Business Advisors’ mission is “Helping business owners and communities plan, grow, profit!” Owner Deborah Kohler is a Business Coach and proud member of the Chamber of Commerce! Feel free to submit questions to debkohler@santafeadvisor.com or call (913) 780-1140.