3 Takeaways About Customer Relationship Magic
On Jan. 6, 2009, a woman from the circulation department phoned and started calling me by my first name and touting all the wonderful improvements and a great subscription deal. "How much?" I asked. "$99 for a full year, six days a week, and that includes the online edition."
I said, "OK, it's a deal. I will give you a credit card." I reached into my wallet for my credit card and started to read the number. "Please wait just a minute," the woman said. "I have to get my supervisor on the line."
I hung up. She called back and I said, "I don't have time for this." I hung up again. What were these idiots thinking?
3. Do you know the projected lifetime value of each customer? If not, why not?
Are you making marketing and advertising decisions based on solid research, or do you go by gut instinct and the creative wizardry of your advertising agency?
The late magazine consultant J. Wendell Forbes used to measure revenue per subscriber by combining total circulation, advertising and ancillary income, dividing it by the number of subscribers and then multiplying by the average number of years per subscriber (lifetime value). This figure tells the circulation manager what is the allowable cost to acquire a new subscriber.
Are your customers in one big database, or are they in silos in multiple databases in different departments or divisions that do not talk to each other? If so, why?
Always spend time talking to—and surveying—your customers. They will tell you who they are and what they want or need, which leads to profit.
If you do not know who your customers and prospects are, the business will fail.
For the past 35 years, Denny Hatch has been a direct marketing copywriter, designer and consultant. He is the author of the free e-newsletter Business Common Sense and the just-published "Career-Changing Takeaways." He can be reached at email@example.com.