There's Gold in Them Thar . . . Existing Customers
The Gold Standard of marketing success is to be the company your market knows, likes, and trusts aka the Trifecta. Who better than your existing customers? They have already used you at least once, and you want to keep them coming back.
These days it seems like everyone is trying to build an empire, but empires take growth to be able to scale. If your market is relatively fixed in terms of the number of prospects, homes, and thus customers, how do you grow year over year? It’s simple, you have to pick up clients from your competitors. If the market pie is the same size, the only way to get more share of it is to take it from someone else, right?
Most companies focus exclusively on acquiring new customers, often at the peril of not retaining their current customers. As industry G.O.A.T. Ron Smith would say, the mission is to “Get and Keep Customers”. It makes no sense to be adding new customers at one end of your pipeline while they’re leaking out of the other end.
We are all bombarded with 5X as many marketing messages these days with no signs of it ever slowing down. That includes your customers too. It’s important to build a top-of-mind fence (TOMA-Fence) around your herd to protect them from “predators” aka competitors, who are investing heavily to take them away so they can grow their empire.
The easy, often overlooked TOMA-Fence strategy is to market to your existing clients. It falls into the category of no-brainer. Your marketing spend is more effective and more profitable with current customers.
Your acquisition costs are a fraction of a fraction to retain an existing customer than it is to acquire new customers. This lower cost of retaining and repeat business means a higher ROI on your marketing spend. Lower costs with better results.
Everyone knows that your conversion rates are higher with existing customers. They already know, like, and trust you, so they’re more responsive than prospects that have never used you before. It’s easier to tell your story and have them actually pay attention.
Repeat purchases and upsells/cross-sells increase your Lifetime Customer Value (LCV) too. LCV not only boosts your profits, it also makes your company worth more when it comes time to sell. One and done transactions hurts both profits and business value.
Marketing to existing customers can build loyalty and create “stickiness” to your business, especially if you personalize the campaigns. That often translates into more word-of-mouth referrals, which everyone loves. You can’t do that as effectively with new prospects.
Sales cycles are also shorter with existing customers. They require less nurturing and education because they already know, like, and trust you, so what you recommend is taken at face value. Plus, there is often no competition as well. And, existing customers usually invest in better, higher quality solutions with a higher Average Dollar Sale.
The key to marketing to your existing customers is to not be a nuisance. It’s a delicate balance or serving versus annoying them. Avoid constantly “selling” at every point of contact. Here are some simple ways to market to your existing customers.
1. Outbound Calling – The old standby still works and segmenting your database can increase its effectiveness. Don’t forget to call sometimes just to check-in and see how everything is going.
2. Ringless Voicemail – Faster and cheaper than old fashioned out bounding, but the message has to be super short (<10-seonds) and super relevant; “Hey, it’s Tom from ABC Air. I was reaching out to schedule your heat safety inspection. Ring me back when you get a chance.” 3-words is roughly 1-second.
3. Text Blast – Super fast and easily targetable with segmented data. People respond to texts; 90% open with 3-minutes, open rate 98%. Like ringless VM, super short and relevant. “It’s time to schedule your annual heat check. What day works? ABC Air.”
4. Email Campaigns – Effective, but not as effective as they once were. They require more planning to execute well. Plus, email open rates are only 20-30%. Think about how you consume information… do you open all those emails?
5. Direct Mail – Direct mail still works the best, because it can be personalized. Execute monthly to upsell, cross-sell, fill seasonal lulls, CYA trail, and boost aided recall. Campaigns can be timely for the month/season. You can leverage creative graphics and incorporate your brand for aided recall when they have a need. Plus, you can make offers, including evergreen options that get held onto by the customer for future service. And the customer can set it aside and review it at their convenience. Direct mail works great with existing customers, and for only about $10/year+/- per client.
Ready. Set. Go build your TOMA-Fence around your herd and start mining the gold in your them thar existing clients. Profits now. Business value later. No brainer. Boom.
Contracting Business HVAC Hall of Fame member Tom Casey, Jr. is the "Been There, Done That" Mentor for True Legends Consulting, Ponte Vedra, FL. He can be reached at [email protected].