By: M. Flynn
Relationship Marketing Expert Spills the Beans…
"How to Get More Referrals and Keep More Clients Than You Ever Dreamed Possible, Slash Your Advertising Expense, and Put Your Marketing Machine on Auto-Pilot!"
In today’s busy world, it seems that no one has time for relationships anymore. This is especially true in business. But establishing and maintaining relationships is the key to setting yourself and your business apart from all the others. It’s called Relationship Marketing and it’s the key to keeping your existing clients, and to getting more referrals than you ever dreamed possible. It can change the way you market yourself forever. And I’m going to show you a fun and easy way to establish and maintain relationships with your clients, as well as your friends and family!
You’ve Been Googled…
Relationship Marketing vs. Traditional Marketing
When you place ads for your business, or send out offers or coupons, you’re sending out to “get”. This is the way most traditional marketing works. Of course there’s nothing wrong with that. It’s a necessity if you want to stay in business. People need to know who you are and what you do. The problem today is that there is so much competition. So many businesses are targeting the same customers. And with the popularity of the internet a consumer knows how to research products and services online making it easy to compare prices and go for the best deal. Because of this, traditional marketing and follow up tactics are becoming less and less effective. Here’s where Relationship marketing comes in.
So, What’s Relationship Marketing?
Relationship marketing is all about building relationships with clients and prospects. It’s an effective way to reduce customer turnover, and increase their loyalty to you. It focuses on building longer term relationships, as opposed to going after individual transactions. It’s about understanding the changing needs of the client as they move through the business life cycle. Many businesses concentrate far more on how to attract customers to their products and services than on how to retain them as clients.
But the cost of retaining an existing client is only about 10% of the cost of acquiring a new one. It often makes more economic sense to give more attention to existing clients. Reichheld and Sasser [1] claimed that a simple 5% improvement in customer retention can cause an increase in profitability of between 25 and 85 percent (in terms of net present value) depending on the industry. Although some dispute these numbers, in theory, it makes sense.
And according to a publication by Buchanan and Gilles [2], increased profitability associated with customer retention efforts occurs in part because;
· Cost of acquisition occurs only at the beginning of a relationship. So, the longer the relationship, the lower the amortized cost.
· Account maintenance costs decline as a percentage of total costs (or as a percentage of revenue).
· Long-term clients tend to be less price sensitive.
· Long term clients are more likely to initiate word of mouth recommendations and referrals.
· Existing clients are more likely to buy from you again.
· Long term clients tend to be satisfied with the relationship and are less likely to go to the competition.
Do You Have Customers or Clients?
According to Merriam-Webster:
Client – One that is under the protection of another.
Customer – One that purchases a commodity or service.
In order to develop a “customer” into a “client, there are several things that you need to be doing.
· Communicate to them that they’re under your care.
· Actively look out for their best interest.
· Constantly and consistently work on establishing and maintaining relationships.
· Always provide your BEST service and value.
· Give more than is expected. (This really takes VERY little additional effort!!)
Many businesses make a sale, and then move on to the next person. But you need to keep in mind that each client can represent a “lifetime value”. And THAT’s what you should be focusing on. You don’t want a one sale customer; you want a CLIENT that provides a lifetime value to your business. The way to do this is to establish and maintain a relationship. Because a client who feels needed and appreciated becomes a salesperson FOR YOU! Remember, it’s not about you. It’s about your client, and what they care about is how your product or service will benefit them. The key to relationship marketing is showing your appreciation and gratitude on a regular basis. Sending a message to your client, by your thoughts and actions that you truly appreciate their business. If you become the type of person who genuinely appreciates others and shows it, you’ll never have to worry about generating new business again. Your appreciated clients will send more referrals your way than you’ll be able to handle!
And remember, it’s never too late to re-establish relationships that may have been neglected in the past.
Which Way Did They Go??
The following are some of the TOP reasons why customers STOP doing business with you.
- 1% die
- 3% move away
- 5% seek alternatives or develop other relations
- 9% begin doing business with the competition
- 14% are dissatisfied with the product or service
- And a whopping 68% state “perceived indifference”. In other words, they feel that their business is not appreciated, or not needed.
That means you have at least SOME control over 96% of the reasons customers stop doing business with you.
And read that last one again. 68%!! That’s pretty amazing. And SO easy to overcome.
An Easy Way To Succeed in a Competitive Marketplace.
As a business person, you need quick and easy solutions to these questions:
1). How do you build your network?
2). How will you organize and communicate with the people in your network?
3). How will you differentiate yourself from a marketplace flooded with competitors?
At times you probably feel like all you’re doing is working AT your business. But that won’t flood your bank account with money. It’ll simply wear you out. Taking time and energy away from the things that you really love. Like spending quality time with your family and friends.
And spending all your time working at your business means there’s no time for you to work ON your business. Establishing and maintaining the relationships with your clients that are CRUCIAL to your success.
Well, have no fear. I’m going to show you a quick and easy way to accomplish all three of the vital steps mentioned above. It will also increase your business. And the best part is you’ll save TIME and MONEY!
Here’s My Card. I’ll Call You Next Week…..
Do you ever get tired of prospecting? Wouldn’t it be nice if prospects would call you instead? You’d already know they were interested in what you’re selling. We all want more referrals, and to grow our business. Real success is about attraction. By being the type of person that you’d want to do business with, you’ll attract exactly what you send out. If you want honest effective, dependable people in your life, you need to practice and think about those traits. Give more than your clients expect. Remember, givers gain. Add more value. Don’t be afraid to give too much. Just a little extra effort or service on your part goes a long, long way.
Remember these numbers…
· 60 – The percentage of all your marketing efforts that should be devoted to reselling your current clients.
· 15 – The percentage of your efforts that should be spent converting inactive customers back to active, repeat buyers (clients!).
· 25 – The percentage of your marketing that should be devoted to gaining new leads and converting them to active clients.
It’s much easier and much more cost effective to grow your business through referrals and your existing client base, than it is to go out and try to get new clients.
Tom Hopkins, the world’s number one sales trainer says that he made it a habit to send out 10 thank you cards and cards of appreciation each day to his clients and prospects. After just 3 years, his business was 98% referrals. He no longer had to prospect. And because of this, he was able to set a record that still stands today. In his last year in real estate, he closed one home a day for 365 straight days. That’s 365 closed transactions in one year. This is the power of showing appreciation and gratitude.
Who the Heck are YOU?
Have you been keeping in regular contact with your clients and prospects? If not, you need to. You want your name to be the one that comes to mind when they’re ready to buy. And remember, just because they weren't ready to do business with you when you last contacted them, doesn't mean they aren't ready now. That’s why it’s so important to stay at the top of their consciousness. So that you’re who they think of when that time does come. And this usually doesn’t happen because you (AND your competitor) sent them a magnet for their refrigerator.
Did you know…?
That each month someone doesn't hear from you, they lose 10% of their recollection of you? If you don't communicate with your clients and prospects for a full year…well, guess what?
You need a system that’s designed to help you keep in touch, while at the same time you’re able to show appreciation and gratitude.
This is the concept of givers gain. You can’t give and expect to receive. You have to give for the sake of giving. Remember, appreciation wins over self promotion, every time. Everyone has deep need to be appreciated. Doesn’t it feel good when you do something for someone, and you can tell that they REALLY appreciate it? It makes you want to do more for that person, doesn’t it? I mean, really. Who would you rather do business with? Someone who doesn’t appear to care one way or the other, or someone who you feel genuinely appreciates you and your patronage?
Powerful Feelings Never go Away.
Right after hurricane Andrew, my friend’s brother came down from up north to help us rebuild. Every night, I would make sure that the guys had a good, healthy dinner. I’d make some sort of meat or chicken, with lots of veggies or a nice salad depending on what we could get. (You can get pretty creative when all you have is a gas grill…). They were GENUINELY thankful for the meal. Not only did they continuously thank me, but you could just see it in their tired bodies. It gave me such a good feeling. I don’t think I’ve cooked a meal since that’s been so appreciated. And I’ll NEVER forget the way that made me feel.
The Power of a Greeting Card
When was the last time you received an unexpected card? Was it from someone that you do business with? Receiving an unexpected card, especially from someone that you do business with is, unfortunately, not a very common occurrence nowadays. And I’m talking about a REAL physical greeting card or even a postcard. E-cards are ok, but come on, I mean really, wouldn’t you rather receive a real, physical greeting card in the mail?
If want to see massive changes for the better, not only in your personal life, but even more so in your business, it’s easy to get started. Simply begin by sending just one unexpected greeting card a day. An unexpected card is a card that comes at an unexpected time. Not a birthday card, or a holiday card (although these are very important to relationships too!) and not a card that promotes you or your business. Something that focuses on the other person, and not you. It’s simply a card of appreciation or gratitude. Send one to a prospect, a client, a friend or a relative, or just the first person that pops into your head, but do it every day. This simple act will begin to attract good things to you and your business. It’ll improve not only your relationships with your family and friends, but also with your clients.
Maybe there’s an elderly person, or anyone for that matter, that doesn’t have family, or many friends. It’s so easy to make their day a little brighter. And sometimes it’s the little things that make the biggest difference in someone’s life. Remember, to the world you’re just one person, but to one person, you just might be the world. That’s how much of a difference a simple act of appreciation can have.
Some of us go our whole lives without telling those that mean the most to us how we feel about them. How much we appreciate and care for them. And the sad truth is that someday it’s going to be too late. Why wait until someone’s gone to say nice things about them? Celebrate their lives while they’re still here and can enjoy knowing how you feel.
There are so many testimonials from people who have used greeting cards in their business and personal lives, and have had incredible response. It’s very heartwarming to realize that each time you send out a greeting card to someone, you’re sending positive energy into the world. And boy, we can sure all use that, can’t we? There is truly magic in sending cards. Be a part of it!
Gratitude. Plain and Simple.
Ok, so maybe you already send thank you cards, and regularly keep in touch with your clients. You’re definitely in the minority... But most people don’t send unexpected cards on a daily basis.
When you receive a referral from someone, do you call them to say thank you? Or do you pound out a quick e mail? How nice would it be to send a thank you for the referral card? And here’s another idea. How about making it a habit to send a personal thank you note in the mail each day, to at least one client. They’re the reason you’re in business to begin with. Don’t take their patronage for granted. Your competitor is working hard to steal them away. Take a minute to let them know that you appreciate their business.
Dan Kennedy (The Millionaire Maker) relates a story of a company that had major collection problems. To begin to rectify the situation, not only did they implement corrective measures such as tighter credit controls, collection calls and a sequence of past-due notices, but they also instituted a “positive strategy”. They started sending hand-signed thank you notes for prompt payment to anyone who did pay on time, those that were almost on time, even late payers who responded to a past due notice. Guess what happened? Those customers that received the thank you notes became better paying customers.
To REALLY stand out from your competition, incorporate greeting cards into your everyday life. Get creative, don’t just send cards when everyone else does, also send them for Thanksgiving, St. Paddy’s day, Valentines Day, Independence Day, Veterans Day, Memorial Day etc. Not just the usual holiday cards. Those sometimes get lost in the shuffle. There’s always a reason to send a card! Make one up. You’ll never bore your clients. And being boring is one of the BIGGEST marketing mistakes!!
Send a gift card or discount certificate to a customer who makes a really large purchase
Just send a card saying “Thanks”. You’ll be WAAAAY ahead of the competition.
Remember this:
People don’t care how much you know, until they know how much you care.
Who’s Your Best Client?
It’s probably someone that you’ve developed a good relationship with, or someone who was referred to you. Wouldn’t you like more clients like these? Then do what you do so well that your clients can’t help but to tell others about you. Remember that your clients do business with you because they know, like and trust you, not because of the company you work for, or your nice signs or letterhead. And even if you sell business to business, keep in mind that the people making the buying decisions are still PEOPLE. They have the same needs and desires as you and I, including a deep need to be appreciated.
Here’s a true story;
Joe Girard was honored by the Guinness Book of World
Records for selling more cars than any single person in
history, 12 times achieving the top vehicle sales in the world.
In his best year he sold 1425 units, all retail (no fleet sales).
His secret weapon?
Greeting cards.
Employing two assistants and paying them out of his own pocket, “Joe sent
out nearly 13,000 greeting cards a month to his customers,
celebrating everything from Halloween to Groundhog Day,”
according to the Detroit News.
Existing Relationships Are The Quickest, Easiest Way of Getting More New Clients.
There are two good reasons to strive for growth through referrals
1) You get your best clients this way
2) You get a client who is predisposed to refer. Since they were referred, they assume that everyone gets to you that way. So they follow the crowd.
In “Prospect Your Way to Millions” Paul J. Meyer uses the term “endless chain of referrals”. The concept is that if each client produces another one in an endless chain of referrals, you just need to start a few “chains”, and you’ll never run out of new clients.
In several of his books Joe Girard talks about the “law of 250”. The idea is that each person has a circle of influence of approximately 250 people. Joe discovered this by asking a funeral director (of all people!) how they know how many memorial cards to print for a service. He stated that the average number of people that attend a person’s funeral is 250. That’s where the number comes from. Hence, the “law” of 250.
When you do receive referrals, there are some important things to do.
First, make a HUGE deal out of the first referral.
ü Promptly send a personalized thank you card.
ü Immediately follow up with an unexpected gift. (A gift card is perfect!).
Your Current Clients Are The Fastest, Easiest Path to Increased Profits.
Have you ever figured out how much you spend on advertising and marketing? Attracting new leads and converting them to clients can be a very expensive process for any business. It’s much more practical and cost effective to establish and develop a relationship with existing clients and to cultivate referrals, than it is to acquire new business. The simple act of sending an unexpected card is such an easy way to begin the chain. And to stand out in the crowd.
A card is one piece of mail that will eagerly be opened. And won’t get lost in the crowd of junk mail that’s received every day.
Here’s an example: How many pieces of mail do you get that are strictly asking for your business? Telling you all about what a great product of service they offer, logos and self promotion everywhere. It’s a fact that 97% of the mail we receive is considered “junk” mail. That means that only 3% of the mail we get is personal. When was the last time you went to pick up the mail and saw that you had an unexpected card, from someone other than a friend or family member? And I’ll bet it was the first thing you opened too.
Now What? Just CLICK to Send!! (And save!)
Getting started with your greeting card program doesn’t have to be difficult or time consuming. Simply sending one unexpected card a day really isn’t overwhelming. And you can buy cards in bulk if you don’t want to spend a lot. Just get yourself a blue pen (I read somewhere that this gets a better response for some reason!), add a quick personal note, sign, and you’re done.
But wait. There is another way.
