How Strong is Their Relationship?
“The only asset that can be kept safe from every threat and made to appreciate in value year after year is the relationship you have with your customers.”
~ Dan S. Kennedy
Do You Really Need More NEW Customers?
It seems as though there are three types of established businesses:
- Those which burn through existing customers and need a steady stream of new ones;
- Those which get more and more out of their existing customers by providing value; and
- Those which are growing steadily by delivering value to existing customers and steadily (or explosively) adding new ones.
Which are you?
There’s nothing wrong with wanting more customers, but you need to know why you need them.
#1 – High Customer Burn Rate
If this describes your business, then you don’t need more new customers… first of all you need to take a long, hard look at why your customers leave you because you aren’t really operating a business, you’re operating a pyramid scheme and that is unsustainable.
Mostly customers leave because they:
- Didn’t receive the value they expected;
- Felt unappreciated;
- No longer need your service or product;
I was talking to someone the other day who has been a loyal customer at a local business for over ten years… and now they are looking at other options. This local business has serious problems if they don’t deal with some critical issues because this is not the only customer who’s thinking this way.
Here’s the problem. The business owner knows they have issues with lead generation which is why they called me in the first place, but they’ve now uncovered an issue with customer retention which could kill their business quickly. However, in the face of some cold, hard facts about customer experience they chose to blame the customers and pursue an aggressive lead generation strategy that ignores the fact that for every 3 customers walking in the door to buy once, two long-term high value customers are walking out!
Think about the impact this has on your authority. When you don’t have any long-term customers or clients, your prospects will be harder to convince and you’ll probably end up lowering your prices and profits.
#2 – Getting More From Your Existing Clients
If you can do this effectively, then you may not need more clients… or at least not yet.
I have some clients to whom I can say, “X is the next logical step toward your goal.” And their response will be, “Let’s start yesterday.” They trust me, and they know that I deliver a great ROI on my projects so cost is never an issue. They also know that I’m not just ‘selling the next thing’ to get more money from them… I’m doing it to make more money for them.
This means that I’m not always looking for new clients and yet my income keeps increasing. It’s especially great at this time of the year because I know many businesses are looking at the calendar and wondering how to pay their bills during the December-January holiday period. Many businesses have worked out ways to provide so much value to existing customers that they never have to worry about losing them… and that even includes some businesses (like funeral homes) who are typically considered ‘one-and-done’ services as well as restaurants who struggle to retain loyal and consistent clientele.
What can you do for your existing clients that would make them joyfully spend more time and money with you? There’s always a way if you put your mind to it!
Not only will this increase your income, it will also increase your authority with existing clients, and your interest from prospective clients.
The Road to Explosive Growth!
Maybe you already have fantastic customer retention: they rarely leave until they move far away, close or sell their business, or die… and you need more leads because you’re ready to grow even faster.
At this point, the trust and authority you have built with your existing clientele is the foundation for attracting new customers and clients who share their attributes and will be convinced by their experience working with and for you. You may not be able to take likes and shares to the bank, but genuine social proof can have an almost magical impact on your ability to generate new leads and close sales.
Building A Solid Foundation of Trust and Authority
I’m a big believer in hard work… but I like to know that the things I’m working on will last. That’s especially true in business. So here are some questions you should ask about your marketing and authority building efforts:
- Do I keep customers, or do I always need new ones because no one ever comes back a second time?
- Am I constantly out there chasing prospects, or do they come to me, ready to follow my lead and listen to my advice?
- Am I investing in and building marketing assets that I can re-use, or am I always reinventing the wheel and chasing shiny objects?
- Do people listen when I talk about my specialty or do they push their own agenda and treat me like a cashier at Maccas who is just there to take my order?
The answers to these questions will give you some clues about how much trust and authority you really have and what you need to change.
