How SoMe Can Boost Retention, Sales and Referrals for Mailers
The three Rs. Do you know what they are? Retention, Related Sales and Referrals.
According to a recent release by the Harvard Business Review Press "Focusing On Your Customer," these are the three solid but often-ignored principles for running any size business, especially a smaller one. A fourth "R", Relationship, could also be cited as critical to remembering the other three.
The longer a customer does business with a company, the costs of marketing to that customer decline and the profits from the customer increase. Furthermore, the costs of servicing this longer-term customer decline over time, because he is familiar with a business' procedures and products and conform easily to the business model.
The key to that first "R" (Retention) is to keep customers over a period of time, by building relationships with them. The relationship must be built on trust and overcome fear, cynicism and the natural barriers we all create against being taken advantage of. This is not an easy task, and can only be accomplished by facing these fears and addressing them head-on in your marketing strategy.
That second R is "Related Sales." In almost every instance, customer feedback and opinion determine what new products or services will bring a profit and tie in with the type of customer drawn to the business. To be sure, the longer one retains a customer, the more effective the marketer becomes at fine-tuning products and services that please that customer and the more critical it becomes to ask questions and listen to that customer. When a customer already has a degree of faith in a brand or company, a well-targeted and well-timed offer is very hard for a competitor to overcome.
Finally, the third "R" (Referrals) begins to surface and becomes the best kind of marketing a business can hope to obtain. It costs the least (not entirely free, but nothing is) and brings the greatest return on your marketing investments.