This is a guest post by Alex Turnbull of Groove .
Have you ever spent weeks or months (even years) looking into your brain trying to figure out how to get new customers?
Before you spend another minute thinking about marketing, consider a simple question: Why?
Why do you want more customers? If, like most owners of virtual stores, you respond “more money” then it’s time to take a step back and look at some factors that may surprise you.
For most small businesses, acquiring new customers is the way less efficient to make more money.
What is the way more efficient?
They are your customers.Those who already have. Those who have already raised their hand and shown that they are spending money on products that deliver value.
The potential spending for new users performance decreases compared to the opportunity to grow your business with your existing client base.
Research proves it : in a report, Bain & Company found that having a new customer costs six to seven times more than retaining an existing customer. And businesses that boosted customer retention rates show 5% increase in profits that can reach up to 95%.
Turn your existing customers into consumers repeaters can be the most efficient way to grow your business.
“Returning customers tend to buy more to a company over time. Like them, your operating costs can decrease “. – Fred Relchheld, Bain & Company.
Want to help your existing customers want to buy more?
Try these three strategies tested, backed by research and case studies to make your customers love doing business with you.
“Get closer to your customers like never before. So close to actually tell them what they need before they realize. ” – Steve Jobs.
In each of your visits to Amazon.com , you’ll see something similar to the following:
Show him to Amazon on what you are interested, and Amazon will you please suggest other products that may have value to you. Most of the time, they’re right.
It is an effective strategy, but how effective? Very effective.
“Amazon says that 35 percent of the sales of their products is derived from the recommendations”. – Matt Marshall, VentureBeat.
And it is definitely a strategy that not only applies Amazon. Netflix also recognizes the tastes of its users.
The recommendation system is responsible for 75% of the choices users make Netflix . Imagine what it would mean for your business if you could influence 75% of your existing customers and make them buy anticipating their needs.
But you have to be Amazon or Netflix – with millions and millions of data points that are extracted throughout the day – should be able to know what your customers want and be able to deliver them .
If you have already purchased a product, email them stand out more products in the same category . For example, you could test your idea of changing “Related Products” to “Customers who bought this also bought” on your product pages.
If you’re talking to your customers, you must understand the challenges they are facing. It offers solutions to their problems, beyond what you’re already offering.
Look on your keychain. Do you have any code or business logo you visited?
If not, you probably have a card with the same information in your wallet or in a notebook. Even if you’re like me, you handle most of these online relationships.
If none applies to you, then congratulations. Maintain one’s position of 2.1 trillion loyal customers with membership in the United States.
Why these loyalty programs are so common? Because they work.
A study by ClickFox in 2012 suggests that 54% of consumers consider increasing the amount of business they do with a company for a reward for loyalty, and 46% say they have already done.
The most popular forms of loyalty programs – frequent flyer programs, memberships in grocery stores and credit cards with rewards – as is well known, are some of the strategies that small businesses generate and offer loyal customers.
In 2011, GrubHub , a site delivery food delivery began offering a fun and unique loyalty program for recurring customers. The program, called Yummy Rummy, was initially tested by the internal team GrubHub, letting customers play a game every three orders they did. They were 25% chance to win free as desserts, drinks and discounts.
And works? We took on the task of asking in GruHub:
“Customers return to GrubHub for many reasons (the customer is the most important), but Yummy Rummy has been an important part of this. Customers call it addictive. ” – Abby Hunt, GrubHub.
How to build your own rewards program?
Two of the many ideas in the loyalty program Dowling and Uncle 1997’s at MIT Sloan Business ReviewThey could be particularly useful for you in your own opportunity. Build your loyalty program:
1) Add the value proposition of your current offer. Think about how you can reward customers with more value from your business, not just free stuff.
“Probably the least useful rewards for your loyalty program are free gifts like lottery tickets; It considers it is successful but receive as short – term tactic that can lengthen devalue the brand “- Dowling and Uncles.
Instead of gift cards, you can thank your loyal customers with prizes that have added value as a useful and unique content that helps them in the context of what they are already buying. Notice how in the example of GrubHub, rewards – free food – are valuable in the relationship between the company and the customer.
2) Maximize buyer motivation for the next purchase.
What you want is your most loyal customers always come back to you. Otherwise, they are not loyal customers, right?
3) Take advantage of your loyalty program to encourage repeat business. There are many ways to do it (again, GrubHub is a great example), but can be ordered employ some psychological strategies to optimize your offer.
In one study, researchers gave loyalty cards in a car wash . The cards provide a seal for each car wash the customer paid.
Half of the cards had room for eight stamps with a free car wash to get it . The other half had room for ten stamps, but with two of the pre-recorded points.
The pre-recorded cards were 178% more useful for business than the other.
Customers with prerecorded card had already begun meeting the target, and their incentive to buy was maximized.
This strategy is known as “artificial advantage.” Very good, right?
Think about the last time you had an interaction with the customer service of a company that will leave you with a WOW. Did you feel like the person who bent over backwards to help you ? That company probably earned you as a loyal and steady customer, right?
Chances are, if the company has a culture centered on the support, “above and beyond” these experiences are the norm.
A couple of years ago, Peter Shankman was exhausted and hungry, flying home from a business trip. He jokingly sent a Tweet Morton’s Steakhouse.
Can you guess after what happened landed in Newark?
Shankman wrote about this experience in a blog post titled The Greatest Story Ever Told Customer Service, Starring Morton’s Steakhouse.
“Customer service is no longer tell people how big it is. It is producing amazing moments in time, and let those moments become the focal point of how amazing you are, and that for you, but by the client that excites them. They tell their friends, and the confidence level up to a factor of one thousand. Think about it: Who Do You Trust ?, more on an ad or a friend that tells you how awesome it is something “- Peter Shankman?.
This post was shared over 16,000 times on Facebook and Twitter – nothing compared to the cost of a cut of meat.
Another example of our records: Allan Branch, founder of LessAccounting is Groove client. After looking email me support, we solved the problem and continue with the interaction. We send you a small detail to offset the problem and he was instructed to show the world:
With its 10,000 followers, our little surprise to Allan made us win a very happy customer , and a lot of traffic on our site and groups.
Give your support team an incentive to create these “great moments in time”.
Not all customers have Shankman’s followers. However, research shows that customers speak, and according to data from American Express, happy customers who have a positive experience with customer mostly share their story, on average, nine people.
How many support tickets receive every day, and would happen if each of them will result in nine new prospects?
The impressive support does more than create the talk, but it makes sound business sense.
American Express same report showed that 70% of Americans spend more money with companies they believe provide excellent customer service. And at the other end (scarier), another study concluded that 91% of dissatisfied customers will not do business with your company again.
Keep your customers happy through support that goes “beyond” can be the difference between growing your business through keep your existing customers happy and lose against your competitors. The choice seems to be an easy task for us.
According to marketing metrics, the probability of selling a new perspective is from 5 to 20%, while the probability of selling to an existing customer is 60-70%.
The odds are in your favor, and the numbers are increasing: deliver more value to your existing customers is the best and most effective way to grow your small business.
Now, I’m not saying you should abandon efforts to find new users. This point will remain a very important part of your marketing strategy.
But we do not make the mistake of thinking that is the only option to grow a business. There are others, as I shared above, which can be as – or more – effective.
About the Author: Alex Turnbull is the founder and CEO of Groove, an app customer support for startups and small businesses. You can follow him on Twitter or read more about it on the blog of Groove.
Buenísimo report Thanks !!!
Thanks for reading Clarita
How to grow your e-commerce business without new customers
This is a guest post by Alex Turnbull of Groove .