Here’s something that’s quick, inexpensive and potentially very profitable. Something that ought to be a priority, but often doesn’t get enough attention - keeping in touch with your existing customers.
You know that it’s much more cost effective to retain customers than it is to acquire new ones, particularly in our industry where lifetime value is so important. Yet perceived indifference is the reason why 68% of customers take their business elsewhere.
A study by the Rockefeller Corporation found that 68% of customers stopped using a business simply because they felt that the company didn't care much about them.
Why customers stop buying
- 1% had died.
- 3% had moved away.
- 5% followed a friend’s or relative’s recommendation.
- 9% found an alternative they perceived to be better quality or value.
- 14% were dissatisfied with the product or service.
- And a massive 68% of people stopped using a business because of… indifference.
So most of your annual churn could simply be the result of your clients not feeling valued.
You spend a lot of time, money, and effort recruiting them in the first place. Don't them leave because of perceived indifference.
So how do you stop these customers being tempted by the competition?
Put together a plan on how you can keep in touch with as many of your clients as possible, as often as possible. Maintaining a dialogue using email or social media isn’t time consuming - and is almost always cost effective. Share valuable risk management advice, topical news stories - anything that you know that will help or be of interest. Position yourself as a trusted advisor.
“Sell something, and get a customer today. Help someone, and get a customer for life”