Warning: Relying On Your Customers Will Cost You Thousands In Lost Income Each Year

If you had a the choice between gaining a new customer or getting more business from an existing customer which would you prefer to do? Logically, you’ve already done the work to gain a customer so it makes sense to try and figure out how to get more business from them. Yet, many businesses focus on the what we call the top of the funnel – bringing in new business.

Don’t get me wrong, you want to continue to develop strategies around bringing in new customers however you don’t want to do so at the expense of your existing customers. If you don’t think about your existing customers you could be costing your business thousands of dollars each year. Let me explain further with an example.

I generally like to get my haircut every four weeks. However, I never know my schedule that far in advance so I don’t make an appointment. Despite my best intentions invariably I get my haircut every six to eight week even though I’d prefer to go sooner. Look at how that affects the bottom line.

If I come in every four weeks that comes out to 13 times per year. If I spend on average $20.00 per visit, the salon will make $260 per year on me.

If I come in every six to eight weeks then I’m only coming in 7 times per year. Again, if I spend $20.00 per visit the salon is only making $140 per year on me.

The salon is leaving $120 on the table even though I’d actually gladly spend it.

If they have two-hundred regular customers that spend on average $20.00 then they are potentially losing tens of thousands of dollars each year.

Now this example is a little contrived, not everyone wants to come in every four weeks and not everyone spends $20.00. The point is that relying on your customers to reach out to you is costing your business money. The thing is it’s a really simple problem to solve. All you need to do is reach out to your customers on a regular basis.

Car dealers already understand the power of this. They send a mailing out every few months reminding owners to bring their car in for service. This technique doesn’t just work for car dealers. If you’re in any business where you know the names of your customers you can take advantage of this.

  • Hair salons can contact their customers every few weeks to setup an appointment
  • Tanning salons can reach out to their customers seasonally to invite them back
  • Dentist offices follow up with their customers every six months for a checkup
  • Heating and air conditioning businesses can call their customers every season for a tune-up

How do you do this effectively? Keep track of how often each of your customers comes in. Mark it on a calendar. If you haven’t seen them in a while, reach out to them and ask to schedule an appointment.

This doesn’t even have to take very long. In fact this would be a great use of your email marketing list. You have started one haven’t you? Even if you haven’t a phone call works just as well.

You may not get every customer to make an appointment but you’ll get some. Even the ones that don’t make an appointment still just had an interaction with your business which is always good.

Most businesses already understand the value of following up with their customers. What separates the successful businesses from the rest is that they take consistent action to bring those customers back.

Put some money back into your pocket. Follow up with your customers.

Do you want more tips on how to effectively market your business?

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Comments

  1. Blog commenting works for me also. That’s why I do comments on several blogs in a regular basis. Nice post thanks for sharing it.

  2. Actually we thinking existing customers are good but actually its not so they are expensive for the business. Yes, I do agree with you. Main reason behind this just because they are out existing customer some of the times we need to give them some discount or give goods on credit basis. Basically this problem in high range faced by small business owner.

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