Customer Service: Increase the Value of Your Customers

How to Increase the Value of Your Customers

There is something about a shiny new prospect that makes us weak at the knees. The same way that a sparkling new car on the shop shelf looks so much better to a child than the one already in their toy box, a new prospect has a certain allure to marketers. This has very little to do with the prospect, and more to do with the thrill of the 'chase'. There's little that can compare to the buzz of turning a cold call into a completed sale.

But whilst all of this time and effort is pumped into generating new business, what is happening to your current clients? A customer doesn't automatically remain a customer, it takes work. The relationship between you and your customers needs to be nurtured. Neglect them for too long and eventually they will become the 'catch' of your competitors. It costs a lot less to retain an existing customer than to acquire a new one - it usually generates more profit too. Research shows that the average spend of repeat customers is over 60% more than that of first time buyers. So, there is plenty of money to be made if you are willing.

Your customers have shown they have an interest in your products/services and that they have enough trust in your company to buy from you - making them a lucrative group to market to. Lazy marketers argue that customers don't need to be chased but come back of their own accord. Successful marketers know that this attitude could cost you thousands of pounds worth of business. Instead of ignoring one of your most profitable markets, sell to them. This does not mean reverting to the hard sell - which is not great for long standing relationships - it means providing the right environment and the right situation in which to create maximum sales. But how do you create the 'right' environment and situation?

Stay in contact

Don't let your company fall off your customers' radar. Whilst they might not be looking to buy anything at the moment you need to ensure that, when they are, your company is at the forefront of their mind. This is not an excuse to bombard them with emails or sales letters. Instead, consider sending an Easter or Christmas card. People appreciate being contacted in a way that doesn't require anything from them in return. Your gesture will make your customers feel valued and will earn you some invaluable advertising space in the middle of their desk.

Keep them informed

People like to know that you think enough of them to keep them in the loop. It makes them feel part of the team, which is important if you are looking to win their loyalty. Tell them about all the latest company news, extended product lines and upcoming offers. However, don't overwhelm them. Take time to target the right information and offers to the right customers.

Reward your customers for their loyalty

It doesn't have to cost you money, but showing customers that you value their business is a good way to strengthen your relationships. Try offering them your expertise on subjects which are of interest to them. Consider making a company blog, or sending out articles. Prove yourself an expert in your field and customers will have trust in your product/service. Use your knowledge to teach your customers how your product can benefit them. But, be careful that your articles don't just become sales copy. Remember, the point is to give your customers a thank you for their custom - the primary objective is to benefit them, not yourself.

Cross sell

It is worrying how many businesses fail to tell their customers about new or additional products in their range. As one of your most lucrative markets, they should be the first to hear about any products which might be of interest to them. This doesn't just mean telling them about your newest products, but also ensuring that they know all about your current products too. A few years ago, one of my oldest clients told me that he was having no luck finding a company which could provide him with a specific consumer list. I told him that we supplied such lists. "You sell Consumer data?" He'd exclaimed. "Why did nobody tell me?" "Well, it's on the website", I'd replied rather sheepishly. He had been buying business data from us for nearly five years and yet we had failed to tell him during that time that we also sold Consumer data. Embarrassment aside, it was a valuable lesson to learn. Don't presume your clients know what you offer, tell them.

Offer upgrades

Upgrades and add-ons are often an easy way to increase your profit - even if it is only marginally. Contact your customers with the options available to them, explaining how quick it is to do and the benefits which will come from it. Most customers will be happy to spend a little more if it will benefit them in the long run.

Follow up

It is all about good customer service. It can be as simple as a quick phone call to a client to ensure they received their product okay. Your customers will appreciate that you have taken the time to check. Only phoning when you are trying to make a sale and dropping all contact once you have made it is not the answer to securing a good relationship with your customers. There is a fine balance between badgering your clients and developing a relationship with them. However, if you find this balance, then you're in for many long and fruitful relationships. And, of course, once you have learnt how to increase the value of your current customer base, you can start expanding it.

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