Monthly Archive for November, 2008

Are You Spending to “Get” or “Keep”?

For many small business owners, the economy is having an adverse affect on their revenue.  Many, faced with this new reality, are forced to reduce their marketing budgets, which brings me to today’s topic.  Are you cutting your spending on client acquisition or client retention?

Many will choose to spend less money working to maintain their existing client base, spending their entire budgets acquiring new clients.  I maintain that this is a slippery slope and very, very dangerous.  If you do not effort to keep your current client base engaged, pretty soon you may not have a client base at all.

Think about it this way, the cost of acquiring a new client is, depending on what or who you read, is somewhere between three to seven times that of maintaining a current client.  More importantly, spending to retain your current clients generally improves the profitablity of that client by 25% to 100%.  So why do so many business owners focus all their effort on acquring new customers?  I think it is because they think that is what everyone else is doing.  They see their so-called competitor’s ads in the newspaper or hear their voices on the radio, so they think they need to be in those spaces as well.

What I propose is that the small business owner focus on their current clients.  One strategy, and he most cost effective method, is to simply pick up the phone and call.  Just “check in” with the client.  Let them know that you were thinking of them and just dialed them up.  No pressure, nothing to sell, just reach out and touch someone.

Then, take it one step further.  After you hang up, follow up your conversation with a card.  It does not have to be long, just something like, “Hey, thanks for taking the time to talk with me today.  I really appreciate your business!”  That’s all, or maybe you want to include a coupon or small discount for their next transaction with you.  I send my cards through a great, low cost, very personalized card sending system, SendOutCards, you can learn more about this system and send two free cards on me (!) at www.mykeepintouchstrategy.com.

So, in these trying economic times, think about starting to spend to “keep” your current clients, rather than spending to “get” new clients. 

Have a great day!

Published on Wednesday November 12, 2008 in Customer Retention, Keep-in-Touch and Send Out Cards. 0 Comments Tags: , , .

Voting is like buying, right?

My wife got up early today and headed to the polls while I stayed home with the kids.  She texted me shortly thereafter and said, “Oh My God, you should see the line!” (of course she didn’t use punctuation, after all, she was just texting).  She left, got her free cup of coffee from Starbucks (give away to everyone who voted) and I went about two hours later and there was still a line out the door.  I thought that was pretty cool and here’s why:  In our small town in Illinois, a state that is going to vote Democrat, in a county that always votes Republican, there is still massive voter turnout.  Why?  We already pretty much know how it is all going to come out, right?  As I said, the state will go Democrat and the county will go Republican.  It has been that way for years.  But still, there is a line.  Why?

I think people want to be a part of this election.  I think people want to have “ownership” in this election.  I think people are “buying” whatever the candidates are selling, regardless of who the candidate is.  Both sides, on the national level anyway, are selling “change” and we, as a country are “buying” by showing up in droves to vote.  The morning talk shows showed lines everywhere, especially in the so called “battleground” states.  So, the business of this election has succeeded, we will have more buyers than we can handle today at the polls.  Like I said, I think that’s pretty cool.

So, how does this all relate to sales and marketing?  Well, I think that too many of us take our customers and clients for granted sometimes.  When was the last time you reached out to your clients?  Do you have a “keep in touch” strategy that continues to add value to your relationships with your customers?  Are your customers so excited about you and your business that they are out there selling for you?  If not, maybe you can take some cues from the candidates and their campaigns. 

Let me know your thoughts on this by leaving me a comment!

Published on Tuesday November 4, 2008 in Customer Retention, How to Talk About What You Do, Keep-in-Touch, Personal Brand, Who Knows You & Do They Like You? and Why People Buy. 0 Comments