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Customers For Life
Who's talking to your customers? Is it your competition? Why or why not? When you stop to think about it, these are valid questions. Most people rely on some sort of clientele for their business, and can improve on customer relations. A more holistic approach to this process incorporates the more global question: How can I create customers for life? Two main objectives in the "customers for life" program are getting repeat business and referrals from your clients. Amazingly, few people diligently pursue these objectives. Many studies have demonstrated that the cost to obtain a new client greatly exceeds the cost to obtain repeat business or referrals from existing clients. Some of the key concepts in mastering the "customer for life" notion include positioning yourself or your company in the mind of your customers as the valid solution to their problem, creating a relationship with your clients, and overtly soliciting referrals. Obviously the concepts can be adjusted depending on the type of industry one is in. Let's examine each concept by itself. Assuming that a business agreement has been reached, it is important to continue to reinforce the idea that you are the continued, and ongoing solution to a challenge, in the client's mind. This is accomplished through continued and planned communications with the client regarding the service or product that is provided. Product or service updates, or other free information are also examples of this kind of communication. For instance, a mortgage professional may supply each of her clients with quarterly rate-updates to keep them informed about the market -- she includes her name with each update. Other reasons to contact customers could be a product/service survey or announcement. Closely intermingled with planned and continued communications with clients relating to specific products or services is the concept of "relationship marketing." This involves keeping informed about some aspect of the client's personal life, perhaps sending greetings on special occasions, for instance. Popular businessman and author, Harvey Mackay, has incorporated the "Mackay 66" in his business. This is a comprehensive, detailed information sheet about clients that incorporates everything from anniversary dates to birthdates of the client's children. The list contains his clients' business and personal data. Mackay attributes much of his success and that of his organization to the concept of taking a very personal interest in his clients' lives and interests. He also has developed very close and enduring friendships with his clients that are personally gratifying. Finally, the concept of continued solicitations for referrals is important to people who produce at a high level. An old saying goes, "ask and you shall receive." While one may have very satisfied clients, a referral is many more times likely if it is kindly requested. Most of the high producing people in any field can completely relate to this. Even satisfied clients need to be approached to get referrals. If you're not asking your clients for referrals, your competition may be! High-producing people will testify to the effectiveness of getting to know their clients. Also, high producers remind clients of a job well done by staying in touch and by asking for continued business. If you're honest, and good at what you do, you owe your clients and their possible referrals no less. Set aside some time to plan and make it a priority. Otherwise, it will be one more important idea that is sidestepped by the urgent activities of life. Eric Johnson is a regular contributor to the Investor's Value View financial newsletter. To send comments to Mr. Johnson or to learn more about the Investor's Value View newsletter, visit http://www.valueview.net.
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