If you are serious about growing your business, it’s easy to be consumed with marketing activities to find new customers. At an instinctive level, it makes sense – to grow your business, find more customers – but there is a better way that’s lower cost, in many cases easier and quicker to do.
The alternative way is by paying more attention to existing customers and the way to do this can be broken down into two words – customer service and loyalty marketing.
Delivering amazing customer service that exceeds the expectations of your customer not only increases the chances they will come back to you again and continue to use your services, it also means they are more likely to recommend you. Referral marketing (as it’s called) is possibly the most powerful form of marketing you can do. If your friend says ABC company services are good you are more likely to trust them than ABC company telling you. This form of marketing also doesn’t directly require spend on advertising to find this new customer.
Loyalty marketing has been around for many years, yet is adopted by so few businesses. It’s proven that using a loyalty scheme to encourage customers to come back is lower cost and has a higher return on investment than marketing to acquire new customers. If this isn’t convincing enough, here’s another thought – according to Alex Goldfayn in his book ‘The Revenue Growth Habit’ most customers only know about a quarter of the services a company offers.
Think about that…
Through amazing customer service and loyalty marketing, you could grow your business by a huge amount by also selling the other 75% of services that existing customers don’t know you have!
So, before you sign off on that thousand pound marketing spend to find new customers, think twice. Could it be better spent on existing customers?
If you want to learn more about loyalty marketing and increasing the amount of referrals you get, check out our online marketing courses.