Most businesses think of a marketing consultant as the go-to expert on identifying and attracting new customers. While new customers are important to any business, they are by no means the only path to improving a company’s bottom line, as any good marketing consultant can tell you.
Customer Retention is the Road Less Traveled
It’s a fact of business life: companies on average will lose 10 to 30 percent of their customers every year. Some die, some move, and some are lured away by a competitor. Surprisingly, only 14 percent leave due to product or price dissatisfaction. The single biggest reason for leaving? A whopping 68 percent cite poor customer service. When a customer gets the impression that their business is being taken for granted, they start looking elsewhere.
A strong program to retain existing customers makes good business sense. One, it takes between 5 to 10 times more money to attract a new customer than it does to keep an existing one. Two, a mere 2 percent increase in customer retention has the same effect on your bottom line as a 10 percent reduction in expenses. Three, you have a 60 to 70 percent probability of making a sale to an existing customer, compared to a 5 to 20 percent probability of selling to a new prospect.
How to Keep More Customers - Build Trust
Trust and company reputation is everything. This idea needs to be burned into the brain of every member of your company. It’s not just about sales it’s about creating a positive experience every time with every customer. Follow this concept and sales will follow.
Under promise and over deliver. Actions really do speak louder than words. Show your customers how much you value their business by delivering a quality product ahead of schedule and under budget. A simple handwritten thank-you note from time to time is one of the cheapest and most effective ways to show customers how much they are appreciated.
Be available when your customers need you. Wherever possible, change your company routine to be more available when it’s most convenient for your customers. Keeping your website and social media channels updated is a great way to keep your “open for business” light burning brightly.
Make it easier for customers to do business with you. Talk your customer’s language, not your industry’s jargon. Review everything with an eye to simplifying – from your website to your contracts and other sales materials.
Handle complaints promptly. Never give a customer a reason to walk away feeling that their issue hasn’t been addressed. Any problems or complaints should be addressed immediately by someone with the authority to fix it, not just smooth-talk it under the rug.
Contact the Top Toronto Marketing Consultant for More Great Business-Building Ideas
Contact Ad Army Group Marketing Services
Marketing consultant Paul Cookson is the CEO of AdArmyGroup.com, one Toronto’s leading advertising agencies, and he has plenty of great ideas for marketing your business more effectively. Paul is a renowned marketing consultant with more than 20 years of experience under his belt, and he is available for a no-holds barred consultation. Contact Paul Cookson today at (416) 286-2860 and get the leading Toronto marketing consultant on your team.