With the economic environment in the grips of the pandemic, you may be looking for ways to grow your business. Your first instinct is to go out and find new customers, right?
But did you know it can cost up to five times more to attract a new customer than it does to retain an existing one?
Not only that, increasing customer retention by 5% can increase your profits by 25%.
So what are you doing to make the most of your existing customer base? We’ve put together somer practical tips to help you grow your business efficiently.
Let’s start with the most important bit.
You need to make sure you have your customer’s information organised, up to date and secure. It may be a finance system, a Customer Records Management system (CRM), an email platform or, worst case scenario, an excel spreadsheet. The richer the data, the better because it tells you more about your customer when it’s time to get back in touch with them.
Here’s where rich data comes into the equation.
It’s likely your customers come to you for a particular reason or service. But it’s also highly likely you have plenty more to offer them. Ask yourself what you can do for them, and use the information you have to back it up.
If a customer came to you for a car lease three years ago, will they be requiring a renewal soon? It seems like a great time to get in touch with them and take away the pain of starting the process all again. Perhaps they came to you for business finance to open a cafe. If it’s a been a little while, maybe they need more money for new equipment or a small refurbishment to keep up with demand. Understanding your customer lifecycle can have an enormous impact on repeat business.
The world is your oyster when it comes to ways to get in touch with your past customers, but some tactics may suit you better than others and it’s always worth trying a combination of a few to make sure you’ve got all your bases covered.
Mail - many customers, the older generation especially, enjoy a formal communication through the mail. This may be in the form of a letter letting them know their lease is coming up for renewal and you’re here to help or even a newsletter providing information on the state of the market.
Digital - contacting your customers through email has a number of additional benefits. Not only is it cheaper and faster than mail, but it also allows you to improve the accuracy and integrity of your data, showing you how many emails bounced. You can resend emails to those who haven’t opened, test different messaging to see which content resonates better and get real data on website clicks throughs.
Cold calling - you may not consider it cold calling if they are already a customer, but a gold old fashioned phone call can take away a lot of the guess work and puts a customer back in your pipeline quickly. Use your data to provide your team with a list of customers who may benefit from them getting in touch to discuss alternative services and get them on the phones.
Direct contact with your existing customer base is a great way to kickstart your brand recognition, but it’s crucial you stay front of mind for when they are ready to make that purchasing decision.
Drive traffic - this is the first and most important step. Don’t forget to direct your customers to your online social media profiles and website in all your communications with them. The more opportunities you have to engage, the better.
Meaningful Content - often the best thing you can do to help your customers if give them something they need for free. This may be an interest rate calculator, an explainer on how a novated lease works or a white paper on the ins and outs of refinancing. If you help them to understand the industry you work in, it can foster goodwill and keep you top of mind.
Post your content on the channels you’re driving traffic to like Facebook, LinkedIn and send a quarterly eNewsletters that links to your website. Don’t forget to check how your content is doing to see what is resonating with your customers to help inform your ongoing strategy.
Remember, making the most of your existing customers is an ongoing process and the better your data integrity is, the easier it is. It’s never too late to start improving your data quality, so make that your first place to start.