How Much Do You Insure Your Customers For?
by Stephen James
Published on this site: June 24th, 2005 - See
more articles from this month...
You insure your motor vehicles, plant & equipment and stock,
but how much do you insure your customers for?
"Are you nuts?" I hear you saying.
Well OK, I'm not talking insurance in the traditional sense. But
let's just take a look at an example for a moment to appreciate
the true investment value of your customer base.
Let's say that you have been in business for 4 years and that during
that time you had accumulated a database of 1,200 customers. Now
let's assume that your overheads (rent, wages, advertising etc)
are $200,000 per year. This means that so far you have spent $800,000
($200,000 x 4) to acquire 1,200 customers, or $666 ($800,000 ÷
1,200) per customer.
In this example, if you lost a customer through lack of customer
care, it has just cost your business $666. So based on this scenario,
do you think it is worth insuring your customers by putting in place
a system of customer care initiatives that will keep your customers
coming back and spending their money with you forever?
Hopefully you have answered YES to that question.
So what could you do to go that extra mile, exceed your customer's
expectations and transform that relationship from just customer,
into customer and friend?
Well here are 7 proven ways to keep existing customers and turn
your new customers into lifetime advocates of your business.
- Send birthday letters.
Everyone likes to be remembered on their birthday. And why not
send a little gift? It could be a voucher to a beauty salon or
restaurant (who should give the vouchers to you for Free since
it introduces a new customer to them at no cost).
- Give unexpected gifts.
If you find an article, a book, an audio CD, or anything else
that your customers may be interested in, send them a copy with
a note saying "I thought you'd enjoy this. I just finished
reading it and it's got some interesting ideas."
- Send lots of thank you letters.
Thank your customers for everything, even paying their account
on time. Attach a small bag of lollies or jelly beans with your
thank you note and have your customers talking about you and giving
you more business.
- Hold seminars, breakfasts or lunches for your good customers.
Have a speaker on an interesting topic and ask your customer to
bring a friend. A great way for your customer to build a relationship
with their own customers, and a great way for you to introduce
prospective new customers to your business.
- Let your customers in on how you do things.
The next time a customer visits your office or store, show them
around. Explain to them what the various people in your office
or store do.
- Educate your customers.
By educating your customers through newsletters, seminars and
reports, you will be showing them that you are knowledgable at
what you do. The more highly they think of you, the more they
trust your advice, products and service.
- Conduct customer surveys.
You may think you are doing a great job, however, if your customers
don't agree, you will have to change or risk losing them. By seeking
customer feedback, your customers will feel that you value their
opinion and you will ultimately be in a better position to service
their needs.
This is not an exhaustive list. The ways in which you can reward
your customers and serve them better are only limited by your imagination.
Start putting some or better yet all of these ideas into practice
and watch the enthusiastic response from your customers put money
in your bank account!
Stephen James specialises in teaching small business owners
powerful sales and marketing systems that unlock large amounts of
untapped cash within their business for low or zero cost. Be sure
to sign up for your FREE access to The Business Club at http://thebusinessresultscentre.com
and utilize the free articles, ebooks and other information that
can enhance your marketing
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