From Retention to Acquisition

What happens after you start putting in the effort to actually make your current customers happy and keep them longer? I believe there’s a snowball effect of momentum, but just as important you’ll have the tools and systems in place to go out and efficiently find more people that would enjoy your business.

First Steps

We’ll work off of the assumption that since you truly care about your customers you’re surveying them frequently, following up on feedback, and fixing any areas of your business that appear to be causing a pattern of unhappy customers. (we covered these steps last week, in case you missed it click here)

Through the survey process and any other systems you have in place hopefully you’ve been gathering customer information. Data such as demographics, purchase history, issues or complaints, and any other information that makes sense for your business to track. If you haven’t been doing this, the best time to start is now.

Sifting through all of this data helps patterns and trends start to emerge. Maybe you had a gut feeling about some things or maybe had no idea but now you can make decisions backed by hard numbers.


A quick story:
I first met with our long time client Joe about 3 years ago and at the time he owned 5 donut shops. Joe’s business was humming along just fine but he felt as though he was constantly fighting the battle to find new customers. His approach was typical: send huge marketing blasts through Facebook, Twitter, email, even the newspaper and traditional mail.

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He assumed that because each of his 5 locations were doing ok that sending the same marketing message from all of his shops was fine. He also “knew” that he better keep marketing because he had to keep finding new customers.

When Big Buck Research & Analytics got involved we refined his process of gathering customer data and feedback making it easy and effective for Joe and the customers.

At first glance we found distinct commonalties among Joe’s top customers, but digging deeper we realized that traits of his top customers differed by location. We also found that different locations had different response rates to his varied marketing efforts. 

We took these findings and turned them in to recommendations that Joe used to deliver targeted messages to potential customers based off of top customer traits. Each of his locations now knew who to market to and how to market to them. There was no more giant net or blind marketing blast. This sliced his acquisition cost and his marketing expense substantially. Additionally, Joe has the first steps in starting to scout new territories for his growing business.


Take it and run with it!

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Now that you’re compiling and analyzing the customer data you’ve been gathering what can you do with it? Let’s look at just 2 of the many things.

  1. With customer data you’re able to tailor new offers or discounts to individual customers giving each consumer the individual experience which is expected in today’s age. This leads to higher satisfaction, increased spending, and longer lifetime value.
  2. By understanding who your customers are you’re able to form an exact marketing strategy to acquire new customers that are similar with your top customers. This cuts your acquisition costs dramatically by narrowing your field of focus and allows you to bring in new consumers that are most likely to stay with your company for the long haul.
Thank you for reading! I hope I’ve left you in a good place with my thoughts on looking at retention not only as the basic right thing to do for your customers, but also how it can lead to substantial growth for your business.

If you have any questions regarding retention or customer acquisition strategies shoot us an email! solutions@bigbuckresearch.com

Our solutions benefit from two approaches under one roof: survey research and database analytics. Whether you want to learn more about your competitors, your customers, your prospects, or your employees, our holistic approach will ensure your objectives are met with scientifically sound methods customized to get to the root of your business challenges– not just address the symptoms. 
 

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