Every year there are new technologies and new market trends that will affect what marketing strategies you implement in your business. After all, developing a consistent funnel of high quality prospects is the backbone of a strong, successful business. But often new flashy gadgets and advertising tools to reach more and more people with your marketing message can distract business owners from what really brings in the most revenue.
There is an old saying in marketing that goes…
[quote align=”left” color=”#999999″]“It is cheaper, easier and more profitable to sell to your current and past customers than it is to attract and convert new ones.”[/quote]
Building a loyal base of lifetime customers is the key to a successful business and in this article I want to share some of the most effective, yet simple ways to increase your lifetime customer value (LCV).
Ok now this may seem obvious but it still amazes me how many businesses fail to do the little things right.
One bad experience or rude sales person is all it can take to lose a potential lifetime customer. Where on the other hand if you always provide VIP customer service, make people feel special and always provide fast, courteous communication, customers will generally continue to do business with you even if a competitor has a better offer.
Ensuring everyone in your organisation is continuously trained and evaluated on their customer service skills will provide massive returns to your business in the long run.
When doing the sums on your LCV, you also need to factor in how many people your avg. customer referrers to you. Consistently monitoring and improving your referral rate will ensure that even in slow economic climates your business will continue to grow.
The best way to improve your referral rate is to implement a systemised referral program.
By actively promoting referrals and offering valuable referral incentives to engage your customers you can double or even triple your current referral rate.
This is one area where many businesses leave huge profits on the table. With email and social media making it free, easy and instant to stay in touch with past customers and prospects, there is no excuse for not touching base with these people on a regular basis.
Scheduling a monthly newsletter to your email database or appointing someone to build and manage you social media networks is a cost effective way to promote new offers, add value to your clients, establish your industry authority and simply keep your company “front of mind”, so next time they need your products or services you get the business.
By avoiding the temptation to always chase the latest and greatest new marketing strategies and doing these seemingly small things right, you can put an “Iron Cage” around your customers and keep your competition out of the picture.