Increase Lifetime Customer Value

Posted by cindymorus

Are you focusing most of your marketing on attracting new customers? A better plan is to spend a good chunk of your time retaining current customers and bringing back former customers. They’ve already bought from you!

Take the time to educate, market and sell new products to your old customers and less time trying to sell old products to new customers and you will see a drastic change in your sales, customer quality and branding position.

Here are a few ideas you can use to retain your current customers:

  1. Stay in contact: This means by phone, email, e-newsletter, in person, even old-fashioned snail mail! My sister is a small group health insurance broker and she’s famous for her Christmas cookie deliveries. Her clients often say, “Christmas doesn’t start until Sheryl’s cookies arrive!” BTW, she personally delivers them…
  2.  Post-Purchase Assurance: This means you need to follow up with customers. Your customers need to feel like they are being supported for their purchase and with the item they purchased. How many times have you purchased a product, then felt completely abandoned? Something as simple as a Thank You note with your contact or customer service information can go along way in retaining a great customer.I recently purchased an expensive Digital Marketing course from a well-known company. I’ve passed 4 of the 8 certifications (at 10-15 hours each) and have yet to receive any acknowledgment or words of encouragement. I even had it for a couple of months before I got started and no one checked in manually or automatically. I’ve been feeling extremely ignored. Fortunately, the content is excellent but it doesn’t make me eager to buy more. And, if someone asks me about it, I’m sure I’ll mention it.

    I bet this has happened to you, too. Where can you add additional touches after purchase?

  3. Deals & Guarantees: Always offer your current customers the best deals and guarantees you have. Show them you appreciate their business or even come up with a club specifically to reward loyal customers. You can also do this with a preferred pricing option, punch cards, etc.
  4. Integrity: Using good business practices and simply upholding integrity, dignity and honesty go along way with customers. Let’s face it, there’s a lot of swindling and garbage out there and the safer and more confident you make your customers feel, the more they will trust you and that makes for an amazingly supportive and loyal customer. And, they’ll tell their friends.

There are three cornerstone ideas to a successful business:

  • Quality product/service
  • Offering useful products/services that solve a problem for or enhance the life of a customer
  • Offer content your customers find interesting

Use this approach of educating your customers and offering them real information and insight and you will be rewarded with loyalty and success.

Stop wasting all your time on new prospects while your current customers fall by the wayside! As my Mom always said, “take care of what you already have.”

As Jay Abraham says, “Your best prospects are your existing customers. If you’ve been putting all your marketing efforts into acquiring new customers, STOP and divert some of your resources into reselling, upselling, cross-selling to those same customers. In every way possible – through package inserts, regular mailings, special offers – stay in touch with those customers and get them used to buying from you.”

So, there it is! Remember, our FREE test drive can help you put together the resources and tools to do exactly that. We can help you educate your customers and you can watch the benefits pay off many-fold.