I hear it from business owners and corporations alike… I tried Facebook, I tried Twitter, I tried Instagram, etc., etc., I must be doing something wrong because social media is getting me nowhere. My website is getting no traction and I am failing to grow my business and traditional advertising is no longer working.
There are many experts and agencies that will step up to help solve this problem for you, but save your money. Your focus needs to be on improving your customer experience and improving your customer retention. You must focus on refining your product or service, your overall deliver experience until your customers are so happy with you they can’t stop using your business. Their friends and family will follow and a virtuous cycle will ensue.
According to Bain & Company, a 5% increase in customer retention can me a 30% increase in profitability for a company. In addition, the probability of selling to an existing customer is 60% to 70%, while selling to a prospect is just 5% – 20%.
How many times have you gotten upset when some company you have done business with makes that great offer to new customers only. Seems they have forgotten a bird in the hand is worth two in the bush!
Has your company been raising prices and not improving the core product or service? Have you lowered the quality to drive increased margins? Maybe you have changed your product mix to drive more profits, or made changes to your packaging to save on shipping. Most businesses make minor tweaks like these year after year and then they are surprised when they find their business in decline.
They redesign their website, add some features that attack the margins, and up their ad spends. The results are all too predictable, they fail to reverse the negative trends.
In business if you are not growing, you are dying. The days of building a brand, building trust and then overcharging your customers is long gone. Although, we still have a few major retailers still trying to convenience shoppers to buy their inferior styles and goods. Companies that work backwards from the customer are the companies that are winning. I have yet to see a customer say…. Please charge me more this year so you have extra money to pay those executive bonuses.
If you listen in to some of these declining companies conference calls you will hear all kinds of excuses and strategy that are based on the cards they are holding, not the cards the customer wants to play.
No company can maintain success without a core set of principles to guide the organization, to lead it through change and provide guidance in an evolving competitive landscape. So before you hire that next consultant, that next agencies, the next expert, go to work on making your product or service so good that no customer would ever want to stop using it.