When we talk about nurturing customer
relations, we are talking about current customer relations. Most small businesses have a rich data base of existing customers
that goes unused. Instead sales and marketing becomes 100% focused on bringing in new business. New business is good, but
mining the gold from the existing customer base has the potential of generating more revenue at a lower cost than bringing
in that new customer.
Consider this:
§ You have already built trust with an existing
customer. They know you.
§ It costs six times more to sell to a new
customer than
an existing customers.
§
Sales
cycle is shorter with current customer
than with new customer.
§ Current customers spend more than
new customers.
§
Managed correctly, existing customers feed
your word-of-mouth marketing.
This isn’t as difficult as you may think. The restaurant/bar business understands
the importance of developing a returning customer base and focusing on making that new customer into a returning customer.
Building these relationships means showing
your customers that you care about them and providing a comfortable environment for them.
Earning long term customer loyalty is an ongoing challenge that has to be part of the overall marketing strategy
to win a sustainable competitive advantage. A company that does not nurture their customer base will ultimately fail.