Posted on Apr 12th 2016 under Customer Loyalty
Well, it’s easier and cheaper to sell to existing customers than to go out and find new ones. But, a business can’t survive on existing customers alone.
Every management authority says that loyal customers and their repeat purchases are the cornerstone of your long-term successful business. The reason is obvious: it is less costly to get your existing customers to buy more than it is to find new ones. The lower cost of leads gives you higher operating margins, which you can then invest in other business building activities, and so it goes.
In the fast changing world of the limo business, you don't always survive using this principle. With all the competition out there, you sometimes need faster growth, massive growth, mega growth, and breakthrough growth.
To get quantum growth in your business, you’re going to need more people booking your limo services and lots of them.
Product development mastermind, Doug Hall, conducted research and it shows that new customers are 2.8 times more important to rapid revenue growth than repeat purchasers.
Limo companies that focus all their attention on customer retention are eventually going to see revenue growth stall or decline.
Some of them do both. They increase the spending of each loyal customer, and aggressively court new ones. But because they think it’s more cost-efficient, too many focus on developing repeat business and limit their new customer activity. Don’t get caught in that trap; while you’re creating loyalty, your competitors will expand around you and drive you right out of the market.
So the key is to focus on both: attracting new customers and retaining the existing ones.
- Continually focus on getting new customers. Develop referral marketing. Build strategic partnerships. Create affiliate marketing programs. Use direct marketing techniques: mail, email, telephone, and so on.
- Remember that your goal is total customer growth. This means that while you’re adding new customers, be sure not to lose the ones you already have. And that means those customers are not dormant – a customer who’s not spending isn’t much of a customer at all. Any solid customer growth plan also includes a re-sell, up-sell and cross-sell program in addition to the customer acquisition plan.
- Redefine your Unique Client Value position. When you’ve exhausted all of your possibilities, it may be time to develop specific services, packages for a specific kind of clients – develop an amazing package for baby shower parties. The easiest niche to segue into is one that shares characteristics with your current market. Sometimes all it takes is a small tweak to your services or the way you package it. Sometimes, you only have to alter the marketing message and collateral.
- Dramatize the Differences. At some point you must take customers from your competitors; that means you can’t have a me-too offering. You’ve got to be better, you’ve got to be different, you’ve got offer something they don’t have. Unless your competitors are bad at their job (not likely) their customers won’t become yours without a compelling reason. And, just because your business is better, they won’t come running. You have to let them know, communicating your commanding value clearly and often, make them feel the difference.
Follow these steps and you will be on the road to quantum growth. Remember – as you’re driving new customers to your door you must make sure to build loyalty at the same time.
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