Lifecycle Marketing – Is rapidly becoming regarded highly as one of the most effective avenues to acquiring and retaining clients/customers and incrementally increasing small business profitability. This strategy, although it has been used effectively for centuries, with new studies and a more structured understanding; will be valid for any business whether they are just opening their doors or are tenured members in their business communities. These efforts can produce long-term sustainable business so long as the company remains consistent in its efforts.
These are the steps each business owner will need to not only become a participant to create positive results, but these steps must become second nature to every person involved in your business:
- Educate the client/customer about your brand.
- Convince them to purchase.
- Provide consistent loyalty rewards, therefore:
- Convert them into loyal clients/customers and strong advocates for your brand.
As simple as it may sound, however, it will take time. This form of marketing is absolutely one that every business should consider implementing immediately. It’s not simple, and it’s never-ending. However, it’s THE best way to engage and retain long-term, loyal clients/customers and significantly enhance your bottom line year after year.
With this in mind; you must also apply these “old school” methods:
- Create Trust – Your company/brand must set its sights on becoming the “tried and true”, the safe place in a world that isn’t precisely viewed by most as safe or trustworthy.
- Consistently Provide Exemplary Client/Customer Service – You must assure your clients/customers that your business exists because they are one of your most important assets. The loss of their loyal business will never be an option.
- Show Your Gratitude – Your clients/customers will always respond to your gratitude for their loyalty. They want to hear and experience your appreciation; not only from you but also from your representatives.
These back-to-basics actions are the very foundation of creating changes in the client/customer’s purchasing behaviors that will enhance your business’ profitability.
Today there are many examples of this form of marketing. To assist in creating a mindful visual of how successful this can be, consider that grocery store card that you scan each time you purchase your groceries.
Decades ago, grocery stores had begun implementing the discount card program. You would provide your information, and in return, you would instantly have the ability to receive exclusive discounts on your grocery purchases. This strategy has proven to be one of the most lucrative forms of customer lifecycle marketing examples to date. Grocery stores, simply by (and now automatically by) prioritizing customer satisfaction and rewards for their customer’s loyal purchasing behaviors, are incredibly successful with nearly every weekly marketing campaign they create.
Today, with ever-progressive technology, these stores accomplish retaining your loyalty across every device you use by reminding you that they are aware of your preferences and are willing to offer you a discount each week on multiple items that you’ve purchased in the past. Their customer retention abilities have significantly evolved over the years.
With each ‘kind act’ of making your experience more enticing and enjoyable, you are inclined in turn, to return to their store for yet another positive purchasing experience. Mission accomplished day after day, week after week and year after year!
There is absolutely no reason that excellent client/customer service would not provide the same results for your business. This customization is the very definition of client/customer lifecycle marketing. It is only one example of millions of campaigns. However, the foundation of this strategy will work for any business. Exemplary client/customer service combined with your customized campaigns and offerings will significantly enhance all aspects of your business, not only for your clients/customers but for you and your employees as well.
Here are Some Interesting Statistics That Apply To The Landscape of Any Business:
- Approximately 80% of companies small to large, globally, spend their marketing budget attempting to acquire a volume of new clients/customers.
- For every 1% of any company’s repeat clients/customers, the company’s revenue is increased by 10%.
- Harvard Business Review reports that the average company residing within the U.S. will lose 50% of their acquired business over a five-year period.
- Two-thirds of an average business’s clients/customers state that they don’t return due to poor or inadequate client/customer care practices.
- If your company, through the simple act of good client/customer services, could reduce your client/customer loss by only 5%, your company profits will increase by anywhere from 25% to 125%. If this grabs your attention, then you should know that 80% of all of your company’s profits that you will acquire in future sales will come from merely 20% of your current client/customer base, according to Kapow.
- Also, according to Kapow; any company that is willing to significantly prioritize their client/customer’s experiences will likely enjoy an approximate 60% higher profit generation over their competitors.
- Employee engagement will be an integral component of your lifecycle marketing efforts. Results of a study conducted by Hay Group show that your engaged employees will create revenue growth twice as high as those businesses with lower levels of employee engagement. The same study reveals better customer experiences and increased customer loyalty.
There are myriads of studies and statistics available to prove the staggering benefits of keeping your clients/customers engaged, happy and returning to your business for their needs. These strategies will be the vital component to the success of your business going forward in 2018 and beyond. Although this concept may seem simple, it requires long-term commitment and cultivation. It can be involved and daunting and will require dedication, not only on your part but from your management and employees.
At Cogent Analytics, we never stop looking for ways to improve your business and neither should you. So, check out some of our other posts for helpful business information: