April 23, 2009, 2:30 pm
“I ordered teal, not turquoise–twice.
“Non-refundable? No one told me.”
“These apples don’t taste organic.”
Let’s admit it: we probably don’t want 5% of our customers.
They abuse returns, contest charges, waste associates’ time and so on.
It’s tempting to focus on punishing these “bad apples” to try to improve short-term results.
Don’t do it! You’re putting good customers last, and encouraging the 95% to look elsewhere.
Instead, why not learn from the bad and innovate to improve good customer relationships?
We’d consider using better service, low-cost perks, targeted messages and increased contacts as retention tactics.
Increasing customer retention by a few points can augment profits 25% to 95%, which helps make those bad apples less rotten.
March 21, 2009, 10:21 am
We’d like you back!
We miss you!
OMG, it’s your last chance
to save!
Surveys suggest marketers are shifting to building stronger relationships with current customers. Smart move.
Will they also activate inquirers, one-time customers and lapsed buyers?
That’s fishing where the fish are.
Customers are far more likely than others to buy–they already “know” you.
Plus, it’s 7X cheaper to retain than to acquire.
We’d consider:
- Using compelling inexpensive ways to turn new customers into repeat purchasers and profitable multi-channel buyers.
- Creating targeted email and/or direct mail to reach customers regularly. Make offers relevant and they’ll want to hear from you.
- Digging into lapsed customer files. It’s cheap and easy to test ways to bring them back.
March 11, 2009, 7:02 pm
Email
Google
SMS
Facebook
Linked-in
Twitter
With more ways to research and communicate instantly, has our decision making improved?
Speed? Yes. Quality? Maybe not.
Haven’t all of us led—been led on—an unproductive goose chase because we acted almost impulsively on partial knowledge or our 30-second reaction?
Particularly now when every dollar counts, we’re convinced that pausing, considering what you’re trying to accomplish—before hitting the send button—has never been more important.
We’ve been trying to:
- Define what needs to be achieved.
- Outline steps to get there.
- Review resources.
Pause.
Solicit feedback.
Revise.
Pause.
Send.
February 19, 2009, 12:06 pm
Don’t friends count?
Aren’t critics relevant?
Who do you trust?
Today, most consumers consult blogs before making major purchases–more than ask friends or family.
Consumers always ranted and raved to acquaintances. And, now they do it anyone “Googling” your company, this redefines word-of-mouth from chat to broadcast.
The wired world magnifies the truism that we tell 4x more people about bad experiences than good.
“News” metastasizes at lightning speed. So, use it to your advantage.
The good news: like talk, electronic marketing is cheap. Maximize the opportunities:
- E-mail your customers and prospects–regularly.
- Build your own blog conveying your message.
- Monitor feedback relentlessly in virtual communities.
February 6, 2009, 12:29 pm
Are you keeping your best customers?
Research and testing can help ensure success.
As more companies roll out efforts to retain their customers–often once results begin to falter. We’d like to offer a few observations and questions.
Does your business revolve around the customer or the company?
Even world-class firms can default to putting short-term results or “policies” ahead of keeping a customer. Losing repeat business far outweighs the short-term costs of satisfying your customers.
Quantifying the cost of acquiring a customer versus keeping a customer is an eye-opening exercise.
Do you know how customers really feel about your products and services?
Recent studies suggesting as much as a four-fold difference between your firm asking about satisfaction versus using a third party are chilling, but we believe true. Our intuitive sense is that many loyalty efforts don’t really improve your customer relationship.
If you haven’t done an independent customer audit in a few years, we’d be glad to introduce you to the experts at The Marketing Audit (www.marketingaudit.com). What customers think could be a revelation.
Have you institutionalized converting leads and keeping customers?
As consumers, we’re overwhelmed by too many irrelevant communications. But receive very few personalized acknowledgements. Do companies not realize that we all want to feel wanted?
As marketers, we’re overwhelmed at how quickly companies stop communicating after we become customers. Do companies not see the value in cultivating repeat business?
We wonder: has the contact strategy been tested and re-tested?
Because the ROI from targeted communication to leads and lapsing customers can be huge–we see great conversion even from aged “dead” customers with the right communication. And it’s easy to test–particularly in today’s wired environment.