Make New Business, But Keep the Old

(Reading time: 3 – 5 minutes)

I’m proud to introduce to Traci Hayner Vanover, who comes to Website In A Weekend courtesy of the inimitable Dave Thackeray. Traci hails from northern Indiana, Fort Wayne in fact, also known as The Summit City. As it turns out, Fort Wayne was the highest elevation on the Erie and Wabash canal. Hence, “summit.” The irony, of course, is the whole area is about as flat as a pancake, all the hills buried by glacial till. Then the darn railroads ruined the canal business… Enough of canals, here’s Traci!

Don’t leave your customers hanging!

-by Traci Hayner Vanover

There are two very important elements you need when you are starting a business: something to sell and someone to sell it to. Finding customers is often difficult, so you want to maintain them once you’ve acquired them. There is an old song that I was taught in Girl Scouts that all marketers could do well to learn:

“Make new friends, but keep the old, One is silver, and the other’s gold…”

You’ve no doubt heard the saying that it is far less expensive to keep an existing customer than it is to acquire a new one. That said, once you’ve managed to close the initial sale, you can’t afford to simply add them to a dusty old database where they will be quickly forgotten. Instead, your efforts should shift from customer-acquisition mode to customer-retention mode. Here are five simple strategies to help you hold on to those hard-won customers:

1. Keep them Informed of Updates

Customers who have purchased your product or service in the past and were satisfied by it are likely to want to know if there are any upgrades or new products that you have to offer. You can disseminate the information to your customers by means of a newsletter, an email or a phone call. Before you go on dialing your customers’ numbers or sending them an email, though, make sure there is something in your new product or product upgrade they will be interested in.

2. Show them Appreciation

Very few people take the time to actually sit down and write a thank-you note to their customers after doing business with them. If your customer bought a physical product or a service from you, it is not a bad idea to mail them a thank-you note a week later. If you are selling digital goods, you can send a thank-you email to your customers a week or two after their purchase. By doing so, you will leave a very memorable impression in the minds of your customers. It will make them feel valued and appreciated, making it more likely for them to come back to you for their future needs.

3. Offer Rewards

After a successful business transaction with a customer, consider offering them a simple token such as a pen, a keychain, magnetic calendar, or even a notepad. Make sure the token has your business name, logo, website, and phone number printed on it somewhere. These items reinforce your brand, as well as the purchase decision – and they keep you “top of mind” you’re your customer.

4. Extend Discounts

After completing a transaction with a customer, give them discount coupons they can redeem on their next purchase with you. You should also contact your customers periodically and extend them special offers you are making available only to existing customers. This is a great way to reward their business and prevent them from straying towards your competition.

5. Implement a Referral System

If an existing customer brings in a new customer, reward them. Doing so will encourage them to share their experiences with your company with their friends and colleagues. The small cost you incur to reward these brand evangelists will be more than offset by the business and goodwill they generate.

Marketing your business is an ongoing activity; far too many marketers lose sight of their existing customers while in the pursuit of new business.

Customers need to feel that they are valued and appreciated – if you can master this concept, you’ll be rewarded with loyal customers and enthusiastic brand evangelists. They’re worth their weight in gold.

Traci Hayner Vanover, aka The Promo Diva(R), is a brand burgeoner and business consultant with over twenty years experience in market research, sales and promotion. Traci specializes in working with entrepreneurs and authors. Traci's Propabranda blog focuses on the conception, implementation and promotion of great brands in a way that is relatable, memorable and fun. Traci also founded and publishes Entrepreneur & Self-Employed Business Journal, a daily business magazine.