getting more business from existing customers
DESCRIPTION
It costs 5-7 times more to acquire a new customer than it does to sell more to an existing customer. When it comes to generating more business, existing customers are like low-hanging fruit!TRANSCRIPT
Getting More Business From Existing Customers
Blase Ciabatonwww.TheDirectMailMan.com
Naples PrintSource
1-7-10
Why am I here today?
• Attendees of this presentation can expect to walk away with simple tools to assist with implementing a communication plan that will reduce customer turnover, generate referrals, and earn more business from existing customers.
1. It costs 5-7 times more to acquire a new customer than it does to sell more to an existing customer. Source: Marketing Sherpa
2. According to Mal Warwick’s book, Revolution in the Mailbox: Your Guide to Successful Direct Mail Fundraising, an acceptable response rate for a donor acquisition mailing is 0.5-2.5%. For donor re-solicitation 6-12% is the average response rate.
3. According to John Coe, author of, The Fundamentals of Business To Business Sales and Marketing, "68% of long-term customers stop buying because they just don't feel "loved“
Existing customers are like low-hanging fruit!
Before you invest time & money targeting new customers be sure that you’ve done all that you can to develop & maximize your relationship with your existing customers.
Limitations & Problems with e-mail marketing:
Spam/being labeled a “Spammer” Understand the Can-Spam Act of 2004 Don’t get black-listed
Time required to put together e-newsletter and technological know-how need to make it look good, make sure that all of the links work, etc.
The best plan for engaging customers involves a multi-channel approach which includes snail mail.
Advances in software and technology have made it easier and substantially more cost-effective to communicate with existing customers
in a relevant & personal way using traditional mail.
• Examples of these Technological Tools include– Card Scan (Buy one)– Variable Data: the ability to
personalize your communication by not only name, but by other preferences.
• Recognize holidays
• Recognize birthdays: www.birthday-reminders.com
• Send communications to support charitable endeavors that you are involved with
Consistently communicate with your own customers
•Coordinate your communication with holidays/deadlines/events that make sense for your business
•Use this as an opportunity to ask for referrals
•Segment your database: use data about existing customers to create targeted sub-groups
Consistently send product-related offers to
existing customers
Consistently communicate with your own customers
Ask yourself the following questions:
• Do all of your customers, know all of the products and services that you offer?
• Can you offer additional service once you’ve sold your product?
• About how long after the initial sale are your clients ready for a newer version of what they purchased?
Identify & acquire a
targeted list of prospects
Consistently communicate with your own customers
Consistently send product-related offers to
existing customers
• 3 main types of prospect lists:– consumer lists – business lists– charitable donors list
• database appending & modeling:– You can use your entire list, or just a segment of your list
– According to John Coe, 50% -70% of the success of a mailing campaign is based on the mailing list.
Identify & acquire a
targeted list of prospects
Consistently communicate with your own customers
Consistently send product-related offers to
existing customers
Develop a comprehensive marketing plan
Failure is not an option!
• 2 most common excuses for not marketing to your customers:• Don’t know what to say: start at the base of the pyramid• Don’t know what to do with your database
• Why do we fail?• Failure to make a plan• Failure to execute a plan
Educational Resources:• Nurturing Customer Relationships by Jim Cecil And Eric Rabinowitz,
Carol Ellison And Karin Rex• Sign Me Up!: A Marketer's Guide To Email Newsletters that Build
Relationships and Boost Sales by Matt Blumberg• Life's Ride or Fall...You Make the Call by Gary Greenfield
Summary:
• Make a simple, realistic plan (1 page or less)• Identify key resources (coworkers, technology,
books, etc.) needed to fulfill your plan• Schedule a specific day of the week & time to
execute your plan• Evaluate results, reassess & adjust plan as
necessary
In the early 1900's, Reverend Russell Conwell -- founder of Temple University -- gave a popular speech called "Acres of Diamonds."
In it, he said: "Your diamonds are not in far distant mountains or in yonder seas. They are in your own backyard if you but dig for them."
