Why keeping your customers is essential to your bottom….line…and how to do it.

Did you know that it costs 5 to 10 times to get a NEW customer at it does to keep a current customer.

And if you know that, let me ask you this next question. What strategy or strategies are you doing to proactively keep your customers.

Here are some things you can immediately do to make sure you increase your chances to keeping your customers.

1) Figure out how much this customer is worth to you over a period of 3 years, 5 years, 10 years and more.

Now even if this customer doesn’t make payments to you on a defined basis the customer still probably worthwhile in terms of repeat business.

For example, if you are a real estate agent then if the average person moves every 7 years, and you plan on being an agent for another 20 years, then you have a chance of a lot of your customers turning over 3 times over those 20 years.

Now of course some customers will not “turn over” that much and continue to buy, but even if you average that out to 10 years or 15 years the commission you make should be still worthwhile in keeping that customer for life.

So how do you keep customers for life.

Let’s look at what keeps people together for life.

Relationships.

If we analyze relationships we’ll see several key things.

1) The person knows the other person and his or her likes, interests, desires, and preferences.

2) Continual communication. Most of the time the people with whom we are closest with in life hear from us on a somewhat regular basis. This communication breeds familiarity whichbuilds a relationship.

3) A win-win for both parties involved – generally. Of course in some circumstances one person is putting more into the relationship than another person, but generally both parties benefit in multiple ways.

So, how can this be implemented into the real world and in your business?

Let’s look at something we can immediately do.

1) Monthly communication – sometime a bit more, but at least monthly communication.

This communication, if possible needs to include:

• Interesting items in general
• What is in it for the person who is receiving the information.
• Something funny if possible
• A testimonial
• How you can help them
• How they can help you.
• Facts about yourself
• What you’ve been up to
• A tip or a trick
• A gift

Now all of these do not or sometimes cannot be done monthly, but this communication will build a stronger relationship with your target market.

2) Being valuable to your person, other than your product or service. An excellent way to do is is be introducing your current customers to your network, and finding out who they need to meet to do more business. It doesn’t take a lot of work to do this.

In fact, the founder of One Degree Connected, Howard Bienstock, taught me this valuable skill. Early on in his career Howard quickly realized the value of introducing people in his network to one another. So if his product broke down (copy machines) people were not really worried about that as much as the business he had made them.

If you can achieve this trusted advisor status then you’ll do better against competition because you won’t be looked at as just another “vendor or commodity.”

3) Ask your customers how else you can help them. Mention what else you provide.? Most of them time they won’t know what else you do and you’ll kick yourself if they go somewhere else after you’ve built the relationship.

If you implement these things quickly…

…your customer retention should be almost bullet-proof. Sure, there are some things you can’t overcome, but you’ll make it painful for your customers to leave you, since you’re providing more than just a “product” or a “service.”

If you need some help, or more ideas, I suggest you subscribe to my newsletter and get my Free Report, Are You Making These 3 Expensive Mistakes in Your Marketing?

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