When a business first starts out, they spend a lot of time working out their niche market, defining who your ideal client is. They spend a lot of time working out how to attract them to their business. Then they spend more time learning how to sell their products, figuring out how to better convert your inquiries into sales to sell more product.
What happens next is the business get busier, it is ticking along, starting to grow. Then at some point, the business starts to think; ‘We need more clients, more sales, more cash flow.’
Many businesses fall into the trap of spending more time and money always trying to find new clients. Unfortunately, lots of businesses are neglecting one of their most valuable assets, their existing clients. They have already invested countless hours and a fair chunk of change trying to attract these clients in the first place. I am not saying don’t try and get new clients, you need to do this. I am saying appreciate the ones you already have, they are the most valuable asset you have in your business.
Sometimes it seems like some businesses go out of their way to ignore their existing clients. This may be a little harsh; however, they certainly seem to neglect their current clients, in favour of finding new ones. In doing so, they are leaving good money on the table.
Understanding the concept the ‘long term value of a client‘, gives you a very different perspective on how you view your clients.
Take for example a Fresh Seafood shop. If the average value of a sale is $35.00 and the average client shops every week on average. That means the value of the average client in a year is about $1800.00. Over 5 years that one client is worth approximately $9000.00.
This is a great client to have. What would you do for a $9000.00 client?
More to the point, if you were a little pro-active, and you kept in touch with your clients regularly, even once a month, maybe you could increase this value, or increase the number of ‘average’ clients that are spending regularly with you.
What would that do for your bottom line? For example, 50 more of your clients that are spending an average of $35.00 a week equals another $90k a year turnover.
Keeping in contact with your existing clients is far more cost effective than finding new clients. It is something like 9 times more cost effective. In most cases the businesses already have them on a database or in a list… Now it is time to get creative and work out great reasons to keep in touch with them.
There are plenty of things you can tell them. The New Year is a great reason to contact them. Let them know that you have lots of great things happening this year.
- Give them a quick list of your new ideas for this year. E.g. The Weekly Seafood recipes or Your new ‘Fresh’ delivery service.
- Tell them about your special New Year offer. e.g. The “Seafood Platter” special.
- Invite them to the special event you’re holding. “Wine tasting and seafood matching”.
- Ask for some feedback on what they would like from you this year.
- Provide tips and hints, e.g. “How to cook mussels – Feed the family for $15.00.”
The point is, every opportunity to make contact with your customers is precious. Don’t let this opportunity to kick the year off, pass you by. Get it done – today!
Your clients are the most valuable asset in your business. Ensure you have a system to put their details onto your data base. If you are already doing this; now you are ready to start offering some great value…
Show your clients that you value and appreciate them. Look after them well, they may even tell their friends about you!
Lawrence Petroni is from Brand Philosophe, for more articles by Lawrence, see his blog.