5 WAYS TO DOUBLE YOUR CUSTOMER BASE IN JUST WEEKS
Advice on franchising by Pieter Scholtz,
Master Licensee for ActionCOACH SA. ActionCOACH is one of the fastest growing
and most successful business coaching franchises in the world today.
By following
these five simple but highly effective steps for generating leads and
converting them into paying customers, you can double your client base in just a
few weeks.
1. Build a Loyalty Ladder to create ‘Raving
Fans’
Loyal customers are the ideal
and those loyalists who refer others to your business are even more valuable
because they are active advocates. However, the most prized clients are the
‘raving fans’ who are so energised about the level of service they receive, that
they cannot stop telling others about it. ‘Raving fans’ are a tremendous source
of new customers and a sacred asset in any business.
If a business identifies
its loyal customers and then treats them to a very high level of service, these
loyal customers will become ‘cheerleaders’ for the business and the investment will
pay off many times over.
For companies to reach
this level of appeal it requires an intentional effort to personalise the
customer service relationship. The investment in service should be calculated
based on the value of the business that the ‘raving fan’ brings to the company.
Rather than offering a preferred customer a standard discount coupon, a
business owner might offer them tickets to a golf tournament or symphony,
deliver flowers or a gift basket or pamper them in other special and memorable
ways.
2. Identify a target market for direct mail
Direct mail campaigns
work best for reaching a defined and identified consumer demographic. Unlike
broad methods of advertising that hit everyone within a given geographical area,
direct mail is intended to arrive at the doorstep of those consumers who are considered
true candidates for the business’ products and services.
To clarify the
demographic, it may be helpful to know, basic information about the recipients
such as their age, gender, income level, buying habits and place of residence.
Mailing lists of people who meet specific criteria can usually be purchased for
a premium from direct mail companies, clubs, organisations and survey
companies. However, the least expensive and often most effective way to
generate a relevant mailing list is to host a giveaway contest. Those who
submit their mailing address on an entry form are obviously interested in
winning that product or service, effectively pre-screening them as potential customers.
3. Create a referral program
Design a referral program
that rewards customers for introducing new customers. Referral rewards can be
in the form of discounts, gifts, invitations to special events or ‘closed door’
sales events where only selected customers are invited to participate and take
advantage of savings, exclusive products or other preferred customer perks.
A referral program can
borrow ideas and schemes from the raving fan concept, but will be executed in a
simpler and more general fashion. Many customers have friends, co-workers and
family members who require the same products and services, so a referral is an
organic process of growing a customer base by using existing customers as a resource
for community outreach.
4. Weed
out redundant customers and cater to the valued ones
Contrary to popular
belief, it can be advantageous to ‘lose’ customers, provided the loss is
orchestrated by the business owner. By prioritising their ideal customers,
businesses are able to focus on attracting desirable and profitable customers
and eliminating those who create unnecessary headaches and detract from their
ability to service valuable customers. Eliminating those who are a liability
can help increase the number of customers in the profitable database.
Identify who your best
customers are by applying the ‘80/20’ rule which states that 80 percent of a
company’s business is generated by 20 percent of its customers. Treat the 20
percent particularly well and invest extra energy in satisfying their needs by
extending service above and beyond the call of duty. By cultivating this core
of your customer base it is possible to procure more customers who are
similarly extraordinary, loyal and lucrative. Birds of a feather flock together
and the needs of the best customers will always be the same as the best
potential customers the company is trying to attract. Learn to cater to the needs
of those clients and the customer base and net profits will automatically develop
in a healthy and rewarding direction.
5. Create strategic business alliances
Consider partnering with
other businesses that have a similar customer demographic but offer no direct competition. Customers who trust other businesses and have
proven their loyalty will be inclined to follow their recommendations or
perceived endorsements of an alliance partner, which is why corporate
sponsorships of major events like auto races and concerts are so common.
Establishing alliances is
a form of networking that shares the common goal of growing each other’s
customer base. By forming good alliances
it is possible to build all sorts of creative campaigns aimed at increasing your
customer base. Locate businesses that share the same philosophy, style and
corporate culture or personality. Advertise jointly, host a party or event
together, team up to support local charities or give preferential treatment to customers
who also do business with strategic partners. For example, a professional image
consultant might team up with a clothing boutique, a spa, a luxury automotive
dealership, a catering company and/or a travel agency. Nobody in that scenario
is in direct competition but they can all fuel each other’s customer database
with pre-qualified and pre-screened leads. It’s a win-win situation for the
businesses and also for their shared clientele.
In the next issue, Pieter Scholtz takes you
through another six ways to double your customer base in a matter of weeks.
ActionCOACH Business Coaching
086 122 6224
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