Each business has an average life of a customer. This of course depends upon the factors of frequency of purchase coupled with the businesses interactions with the client in between. For example a car dealership may have a span in between purchases of 3 years on average. If the business does not have any interaction with the client, the trust factor goes out the window. I want to discuss the concept of maintaining and prolonging the life of your clients so you can tap into the Buy Again factor.
The cost of customer acquisition is typically one of the biggest expenses a business can have yet, it is rarely measured. Why is it rarely measured? That is a great question. Fact is customer acquisition is why I have a job and the main reason why 9 out of 10 businesses never celebrate their fifth birthday (according to the Small Business Administration). Think about what problems and struggles in your business that could not be solved with more cash flow (unless you have major struggles with expenses outweighing income which, let’s face it, this should not be a problem)
Getting a client to buy from you is typically the hardest part, assuming you’re doing what you say you do. If you are not following through on client expectations, then filling up your business with paying clients will be like filling up a sandy bottom well (they will sink out almost as quickly as you get them in).
The concept of “Buy Again” actually begins before you launch your first marketing/advertising campaign. Waiting until your prospect makes the conversion into being a client is 2 stages too late. By having the plan in place, it makes you able to adjust and act for the needs of your client. Kind of like a champion football player, you can’t think about the play in front of you if you want to make big gains, you need to think 3-4 plays down the field.
The life of your client and the acquisition of new clients will accelerate or die depending upon the fulfillment (customer service) you offer. Frankly speaking, you need to know 3 things:
- What are your clients expectations
- What are their past experiences
- What are their current options
If a client has an expectation that you can blow out of the water and you know they are used to sub standard treatment and that the competition will not consider offering more; winner winner chicken dinner. If on the other hand you are not qualified or able to offer what they are used to receiving, your client will typically not politely ignore the results they are experiencing.
Extending the life of your clients and getting repeat business is (or should be) your goal . Give us a call to talk about how we might work together to make this happen.