All Customers are not Equal
Often in our world, equality and equal rights becomes a subject that gets everyone talking. Equal rights is a fundamental aspect of democracy and our understanding of fairness. This equality mentality while okay in general terms, cannot apply to business strictly because we live in a customised world. It is important that fairness is applied in business transactions and in dealing with customers but to deliver a great service and grow a profitable company; it may require thinking differently about how best to serve your customers in a uniquely beneficial way. In general, success in gaining your customers attention is related to relevance and specificity to their needs.
To keep your customers and cerate lifetime value often means that businesses need to clearly have a way of segmenting their clients and creating value for them. This understanding means generally, customers have to be seen differently. A clear understanding of this will ensure success in marketing.
Generally, it costs 5x more to acquire a new customer than to keep or retain an existing one. There used to be a time when you could sell to a client and expect they would buy from you forever. In today’s world there is stiff competition for customers.
Your Customers are NOT CREATED EQUAL: Client acquisition strategies often mean that we attract leads and new customers to our business in different ways. An important skill for any business to have is the ability to constantly generate new business and to ultimately automate lead generation so that new business is constantly being attracted to you without doing any much more.
Clients and Customers are acquired through different strategies and some of these much more expensive than others. It therefore means that technically, all customers are not created equally; some cost us more to acquire than others. This is important for 2 reasons as the cost of customer acquisition often needs to be looked into and minimised to ensure return on investment and profitability. If you are spending more to attract new business than the business you are getting from these customers, then you will not be profitable in the long term. The second reason this is important is the fact that good quality leads are often more expensive to acquire and it is important to ensure a process is in place where your leads are in specific funnels that will bring the most profitability to your business.
Your Customers are NOT EQUALLY PROFITABLE: As you gradually begin to understand your “Ideal Customer” and their profile, you will find that it is easier to satisfy some customers than it is others. Don’t let the few determine how you see success; gravitate gradually towards your sweet spot. The reason is that your satisfied clients and customers will end up being your most profitable as they will naturally be the ones to quickly and easily promote your business. The Pareto Principle applied in your business signifies that there will be a small 20% of your clients that generally produce 80% of your turnover both as a direct result of the products and services that they buy from you and the customers that they refer to you. To turn round and treat them exactly how you treat all other customers, might be practically impossible because your success would be hinged on being able to retain and work well with this group of your customers.
Your Customers DON’T WANT THE SAME THING: Now I understand that you might be selling the same types of products or services, but often there may be specific things that your customers are interested in. Understanding their specific needs means that you do not bore them with what is irrelevant and means that you can address their interests in a specific way.
Online marketing enables you above other things to:
- Create multiple customer acquisition funnels that will ensure you clearly know the cost of each new client to your business and track their profitability over time
- Helps you investigate your most profitable sources of lead generation so you can minimise waste, maximise your budget and duplicate and expand successful channels
- Create and customise your marketing message to different audiences in your business so that you are sending suitable communications that is relevant to their needs and creates more engagement with them.
- Use customer and client surveys to deliver specific user needs and requirements. Often surveys are used to determine the common needs and expectations, while this is good depending on the company’s size, it should also help deliver targeted opportunities for your clients especially if you are in a high value business e.g. Consulting and Information Technology.
- You can create packages within your business based on what you are offering to your customers and specifically showing what they would receive from you. This is commonly used in businesses in different ways.
- Segment your customers on the basis of who has bought from you and who has not. Create value based on your customers and their level of purchase. In effect you are acknowledging the value your customers are bringing to your business.
For an opportunity to understand Digital Marketing and how to develop Engagement Marketing Strategies in your Business, we encourage you to Contact Us.