For most businesses, this is a pretty simple three step process…
- (Correctly) Targeted Marketing = Conversion of Leads to Warm/Hot Prospects
- Irresistible Offer = Conversion of Prospects to Buying Customers
- Outstanding Customer Service + Relevant Additional Offers = Repeat-Purchase Customers (Clients)
Let’s look at each of these steps in a little more detail…
Correctly Targeted Marketing
I say ‘correctly targeted’ because selecting the wrong target audience to receive your message, or in many cases not selecting one at all, and instead trying to market to ‘everyone,’ is one of the biggest reasons response (and therefore directly-generated income from marketing campaigns) is so low, if not non-existent for the majority of businesses.
If you look at niching and sub-niching – taking a specific segment of your target market – and produce something which will motivate them to take specific action to solve a specific problem they are having, your marketing costs will be much lower, your response rates will be higher, and you will find the conversion of these ‘hot prospects’ to ‘paying customers’ a lot easier.
The limiting factor of lead generation is still the cost, which I guess is why many businesses turn to Email and Social Media marketing as the ‘golden egg’… no perceived cost and reaching to a wide audience when implemented.
Having the right offer – a compelling offer which aligns with the way your customers want to do business – is essential if you want people to buy. Generating ‘traffic’ is relatively easy. But as I’ve said, generating relevant traffic, people who are actively looking for the solution that you offer, needs a bit of thought and attention.
If you don’t make a compelling case of why a prospect should buy from you, then they are more likely to shop around. If they can see no (other) benefits of buying from you rather than one of your competitors, then they will resort to and buy purely on price. If there is no perceived difference, then why should they pay more?
So your offer needs to be targeted at a particular problem or problems your ‘ideal’ customer, or niche, are having. Then it simply needs to be packaged as the ‘only solution’ for their problem and get this message in front of them.
Outstanding Customer Service + Relevant Additional Offers
The third step is a combination of two specific things…
Consistently delivering outstanding customer service, combined with having a series of relevant additional offers you can promote to your paying customers. It is a fact that someone who has bought from you before is 6 to 8 times more likely to buy from you again, so you need to have additional offers you can put in front of them, to increase the overall transaction amount over their lifetime as a client.
It is fairly easy to sell something to someone once – you don’t even need to be confident at selling – but it is only by creating a ‘relationship’ with your customers, by offering them additional products or service which will benefit THEM, that you will encourage additional sales, turning one-time customers into repeat clients.
If you focus on the customer and their problems, and offer outstanding customer service, your customers will keep coming back.
And if customers keep coming back, they will also tell their friends, family, associates, colleagues and acquaintances who are more likely to visit and buy from you…
… And they in turn will tell their friends, family, associates, colleagues and acquaintances…
… And so the cycle continues.
This cycle of recommendations will attract more people to your business simply by word of mouth, and that not only feels good – it makes your business more profitable too!
To a business owner, there’s nothing better than having a customer complement you on the way you run your business, and it’s for this reason that I take the time to thank and congratulate a business if I think they are offering outstanding service.
On the other hand, when a business offers poor service, not only will I not go back there, I will also tell everyone I know not to go there!
And, interestingly, people are likely to tell more people that they have had a poor experience, than they are when they’ve had a good one.
So, outstanding customer service is important in that it generates word of mouth customers (for free) but it is also necessary to help prevent the potential loss of new customers to your business, as well as preventing (or at least minimising) the damage to your business which poor customer service can bring.
By the way…
With Social Media, such as Twitter and Facebook, bad service experience by a customer can be broadcast globally in a matter of minutes (even seconds) after it has happened…
Do you really want that type of negative press?