Like any other entrepreneur, I started out as being the CEO, Chief Marketing Officer, Vice President of Parking, and Head Janitor. To wear multiple hats at the same time is the norm for anyone in a small company. Very few people, if any, are comfortable in every role but being an entrepreneur, being uncomfortable is a comfortable thing to do.
Over the last few months, I have been coaching a new client in regards to the general business management of their company. Lately, we have focused in on more specific pieces of their business, like their budget or marketing plan.
A good marketing plan not only lays out who your customers is, how to attract them, but also on how to retain them as your customer. Depending on the data source and method of calculation, it can cost between 3 to 30 times more to acquire a customer versus retaining a customer. For a business to grow, customers’ retention is very important. It is very hard to find a business that would be sustainable, over the long term, if it only services its customers once and only once.
This brings me back to my customer. When developing the marketing plan, I asked them about their retention strategy. The answer I heard back was “Well, we have the first appointment, and a lot of the times, that is the last time we hear from them.” I asked if they ever do a follow up call 5-10 days after the initial appointment and they said no.
A follow up call is a great to opportunity to:
1. Get feedback on services performed,
2. To setup a future appointment,
3. Further cultivate the relationship with the customer, and
4. Keep your company and service top of mind for the customer
With follow-up calls now being performed, revenue and cash flow is increasing. Less time and money is required to keep sales levels at a constant level and has allowed growth in the business.
If you have any questions or comments, please feel free to contact me.
 http://www.camfoundation.com/PDF/Cost-of-customer-acquisition-vs-customer-retention.pdf Chartered Institute of Marketing