Customer Success Consulting and Managing is somewhat of a new thought. Companies have worried so much about customer acquisition that they have forgotten about customer retention. The important difference between the two, customer acquisition cost more than retaining customers. Companies want to get everybody they can in their door yet won’t do everything they can to retain them. This is a problem for most companies as their focus is primarily marketing to new customers and seemingly forgetting about the ones they have.
Customer retention is one of the most important aspects to building and keeping your company in the green. Customers that continue to go back to the same business will spend more than a customer that has never been there before. New customers will be weary to spend excessive amounts just because they do not know the business they are working with. Where your loyal customers will have no problem spending, they have worked with you before, they are comfortable. If loyal customers spend more and require less, then why do companies not focus on retaining them?
There is an idea that companies can grab a majority of the market if they market to everyone. This is not a great way to do business if you are sacrificing quality. Companies generally start marketing to a certain type of customer which builds their success. After the company becomes successful with a certain market they want to branch out to grab more of the market. They forget about the customers that made them successful in the first place. Companies want to expand as quickly as possible without thinking of what can happen if they forget about their foundation. This ultimately leads them to spreading themselves thin and losing their foundation customers.
It is important to understand the value of one customer/client. If treated right, these customers will be your free advertisement via word of mouth and referrals. This type of advertisement is better than the commercial or ad in the paper, it is the ultimate advertisement. People trust people when it comes to working with a business. Companies need to treat every customer like they are the most important part of their company, because they are.
If you need help increasing your customer success and sales, Tier One Consulting specializes in this area. We help businesses create and build on their foundation for long term success. Contact us for a free consultation to start building your customer success.