Retention is the best form of acquisition

Issue 6 Vol 3 | April 2010

 

 

Most of us realise it is less expensive to retain a customer than to find a new one. Also it is easier to up-sell and cross-sell to an existing customer. So a customer retention strategy is a key ingredient to success particularly in more difficult times. Email can play an important role in your retention strategy.
Here are some important keys for making this successful.

Email is a proactive way of keeping top of mind with your customers. So set up a publishing schedule e.g once a month, which keeps your company in front of your customers.

Email enables you to up-sell and cross sell your products and services to your existing customer base. Make sure your website supports your email promotion with simple to use landing pages to order your products or to receive your services. Track the click thrus to identify who is showing particular interest in the products/services you are promoting. Allocate staff to follow up the click thrus your newsletter generates.

There are lots of emails being sent to your customesr so make sure your content is well targeted and of interest to your customers. If neccessary segment your mailing lists so that the information delivered relates specifically to your readers. MarketingSherpa has found that any segmentation can increase clicks by up to 70%.

Set up processes to respond quickly and personally to any customer or potential customer who gets in touch. Make sure the replies from your organisation are friendly and helpful.

Success story

Here are some excerpts from a recent testimonial from Propell National Valuers, one of our clients, about the successful implementation of a newsletter that targeted a specific part of their market.

We started out using the system to send our internal newsletter (which we still do) and used that as a testing ground for things such as headlines, article content and length, newsletter size etc. In other words, the standard marketing testing process. What it showed us however, was that the old maxim of “solving a problem”or “giving the client what they want”, was not only true, but that to go against it or try to be clever was tantamount to shooting yourself in the foot.....

What is great however, is an external monthly email we sent to all the commercial real estate agents on the Sunshine Coast. This 2 page article was a classic case of “solve a problem”. The availability of commercial leasing data is a constant bug-bear to commercial real estate operators (agents, developers, managers etc) and we have been collecting this information for some time in the hope of building up a database product to assist our valuers. Given that we collect this information from commercial agents we felt it was only fair that they received the entirety of the information back as a reciprocal appreciation of their effort. Our first email achieved a 50% hit rate and we have averaged a 60% hit rate on this newsletter ever since. It goes out once a month and is now being commented on by agents as being the most sought after piece of information on market activity and pricing. It has been picked up by the local property magazines and is being used in the same way but is now seen by thousands of people who read the weekly magazine (even though the data itself is only published by us once a month)....

To anyone looking to increase their business output I say this. Get yourself organised with an online automated newsletter system such as Using The Net. Find out one area of business activity that you are involved with where information is hard to come by. Put in place the equipment, personnel and procedures to collect and report on that information and then send it out to your client base using the newsletter software. You will be staggered at the feedback you will receive by undertaking this process and by the brand awareness that occurs as a result. If you want to be seen as an industry leader you need to give your target market something that they don’t already have. They will love you for it.

To read the full testimonial click here


How to make a newsletter work

by Michael Katz

Grab a pen and a piece of paper. Draw the following: Two large circles side by side, connected with a straight line. Now, draw another circle around the entire thing. These four elements – two circles, a straight line, and an all-encompassing circle – should be top of mind whenever you sit down to write your newsletter.

Here’s what I mean:
The right hand circle represents your target audience. These are the people with whom you wish to communicate. Presumably, since the purpose of publishing your newsletter is to attract more clients and more business, the target audience is people who "look like" your ideal client. Notice that I said ideal client – not vague demographic group or mishmashed compilation of anyone who could theoretically hire you. This is the person who, if the phone were to ring at this very moment and you could decide, would be on the other end of the line. Write for his/her benefit.

The left hand circle represents the things you know that are valuable to your target audience. Your knowledge from their perspective. Nobody wants more e-mail, and the only way your target audience is going to read your newsletter month after month, is if they view what you’ve got to say as essential; something that helps them do their jobs better or live their lives easier. If you’re a recruiter, it might be insights into finding and hiring great people. If you’re a plumber, it might be tips and perspective on maintaining the plumbing in a home. You get the idea: Information in your area of expertise that your target audience needs.

The line between the two circles represents the content of your E-Newsletter. Each time you publish, a little piece of what you know travels from your circle, down the line, to the target audience. Not too much at a time… just enough to help them today and keep them coming back for more. The all-encompassing circle represents your voice and personal perspective. This is the piece that is usually missing. And while it’s certainly essential to provide valuable information to the right audience, if that’s all you do, you’ll have trouble ever positioning yourself as an expert with a discernable style.

Certainly, as a professional in your field you need to know the basics. But that’s not what gets you hired, and it’s definitely not what makes people go out of their way to track you down. It’s your authentic voice and "let the chips fall where they may, this is what I think" point of view, wrapped around the useful, on target information, that will have them lining up outside your door.

Visit Michael's site