If you’re wondering about why customers leave or don’t return, here’s what studies have shown.
One percent die.
There’s not a lot we can do about that. Its the old ‘death and taxes’ thing. Fairly unavoidable.
Three percent move away.
There’s not a lot we can do about that either. People move, now more frequently than ever. Often out of the reach of our businesses.
Five percent follow a referral.
These people get a referral or recommendation from a friend or family and decide to make a switch away from your business. Referrals are a very strong motivating factor. They’re the . . . → Read More: Why customers leave
Most businesses understand that it is a lot less expensive to keep a customer than attracting a new customer.
However, some of these same businesses don’t know, or even understand the concept of long-term customer value. They will spend incredible amounts of money on advertising and marketing to potential customers, while neglecting their existing customers base.
We’re working in a different economic climate now, where attracting new customers is increasingly difficult. That means that replacing an existing customer will be very expensive in both money and effort.
Research has found that 60% to 80% of a business’s lost customers were either ‘satisfied’ or ‘very . . . → Read More: Satisfied or Loyal Customers
Referral marketing is an often overlooked facet of marketing. Word of mouth referrals are extremely valuable. When people are looking to make a buying decision, that often ask friends or workmates for their ideas about who to buy from.
A recent study into the value of a referral program determined these two attractive conclusions:
Referred customers exhibit a higher contribution margin, retention, and customer value.
Referred customers are more valuable in both the short and long run.
Source: Philipp Schmitt, Bernd Skiera, & Christophe Van Den Bulte (2010) “Referral Programs and Customer Value”
Think of all the possible contacts each one of your clients . . . → Read More: Referral Marketing
The concept of email marketing is easy to understand. A business can send out emails, (to people how have given their permission to receive emails), informing its clients or customers of current events with the business, special offers, information on related products or services, continuing education about products already purchased, or anything else the business would like it’s customers to know about.
But is email marketing right for your particular business? Here are some items to think about when considering whether or not email marketing is a good fit for your business.
Would you like to have repeated contacts with your customer/client base?
Email . . . → Read More: Is Email Marketing Right For Your Business
