I was thinking about how valuable our existing and previous customers are and decided to share some thoughts with you that will help you in these trying times.

Our existing customers are valuable because they have already bought from us. So when they have a great experience, they will buy from us again. Realizing that it is much more expensive getting a new customer than selling to an existing customer, we really are saving ourselves a lot of money.

They are also valuable because they can give us invaluable feedback on how they view us thru their eyes. And they continue to save us money because they are our source of referrals and new business.

This gives us access to new prospects who already know about us and have a positive opinion of what we do.

When I consult with clients, I always find that they are not leveraging their existing customer database, if they have a database at all. By not doing this, they are losing out on a cost effective source of potential new business.

Here are 7 ways to get more from your customers and maximize the value from them.

1.  Personalize everything.  Since the computer industry came about, Customer Relationship Management software  was developed, and because of this, personalized marketing is being practiced by businesses large and small across America.  You want to lavish personal attention on customers who are going to reciprocate by being consistently good purchases of your products or services. The more your customers feel as though you are treating them individually, the more likely they are to continue their relationship with you.

2. Ask for Feedback.  If you don’t know what your customer thinks about you, your business, your product or services, then you might want to think about selling your business.  Customers are the best source of objective advice on how you can improve.  Have a process in place where you regularly ask them for feedback, and then communicate with them on how you are going to use their input. Many customers will now feel involved with your company and are more likely to send other people to your business.

3. Give everyone a Guarantee.  A powerful guarantee is a wonderful tool for keeping your customers when they might think about going elsewhere.  A good guarantee is easy to understand, meaningful and easy to collect on.

4. Loyalty programs.  Create a loyalty program for your customers.  When properly designed and executed, they provide a vital link between your business and your customers. They improve customer satisfaction and increase sales.  Here are some ideas that you can use.  Preferable rates for loyal customers, Programs that promote multiple purchases like buy 3 and get the 4th free, Give a bonus product or service if they have bought before, and lastly, have a points program where each purchase is worth points that they can redeem to get some greater reward over time.

5. “Wow” your customers.  Anyone can satisfy a customer, but only when you continually “Wow” them, will they keep coming back over and over.  Your goal should be to exceed your customer’s expectations on every experience you have with them.  Do this and you have a customer for life.

6. Create a Referral Process.  In creating a referral process you must be very clear about whom you want as a referral and why.  You must get this message across when you are asking for referrals.  The quality of referrals you receive will depend on how well your customers understand what you are looking for. The best time to ask for a referral is when you have concluded the sale.  Ask them if they know of any other people who would be interested in your services.

Now you must implement the most important part of a Referral System.  You must thank your customers for their referrals and let them know that you value them and their efforts in helping you grow your business.  It makes them feel recognized and will make them refer more and more new customers your way.  A thank you can be as simple as a hand written card.  You can offer something as a thank you like 2 movie tickets or a voucher for future purchases. 

7. Keeping in touch with your customers.  It’s all about maintaining relationships.  Customers are most likely to keep buying from you if you have a strong relationship where they trust you and what your product or service can do for them. 

Some of the ways I try to keep in touch with my customers are thru my Marketing Tips of the Week, this blog, email, telephone. I’m sure you can add more to this list. Keep in touch often but not less than once a month.  Tell them what you are doing, some tips and hints and other useful advice or resources.

I know that if you implement even a few of the above items, you company will survive these trying times.

Let me know your thoughts or if you have any ideas to add.

Technorati Tags: customer feedback, customer value, keeping in touch, loyalty programs, referral process, wow the customer

I was just thinking about why Coke made the decisions they made when they took the old Coke off the market and created New Coke; it turned out to be a disaster.

I googled Coke and found out some interesting information that I feel pertains to all of us who are in business.

In the early 1980’s Coke was the dominant soft drink in the world.  Then along came Pepsi with their Pepsi Challenge, in which they had groups of individuals sipping a sample of Coke and a sample of Pepsi.  When asked to choose between Coke and Pepsi, the majority chose Pepsi.

Coke then did their own blind study and found the same thing.  When it came to a sipping challenge, the majority chose Pepsi. 
So what did Coke do?  It took their best seller off the market and created New Coke.  What a disaster.  You probably remember it.  

They made New Coke sweeter because Pepsi was sweeter.
Following their error of judgment, they listened to their customers and reintroduced the old Coke back as Classic Coke. 

Here is what Coke didn’t realize about the taste test…the test was just a sip test.  Tasters don’t drink the entire can.  They just take a sip from each of the brands, or as in the Pepsi and Coke example, a sip from each, then make their choice.

When Coke did the test differently, where they allowed the taster to finish the can, they found that the majority chose Coke over Pepsi.
Pepsi happened to be a drink that shines in a sip test.  Does this mean that Pepsi mislead people?

I don’t think so.  It just means that people have two different reactions to colas, depending on the type of test.

Think about how this might apply to your business.

Also, the color of a product makes a big difference.  I remember reading a while ago, that Margarine was originally white in color.  When they changed it to yellow, people accepted it more because it looked like butter.

Just a few examples for you to consider when you are getting feedback from your customers.

Technorati Tags: customer feedback, focus groups, surveys