It may be difficult to think of the interactions between a customer and a brand as a
relationship, but these interactions should have all the elements of a mutually beneficial relationship. A popular Entrepreneur.com article reveals the importance of established customer relationships and provides some helpful tips for improving relationships between a brand and its consumers. Customers should feel free to interact with a brand as they would a trusted friend. Companies should be willing and eager to respond to customers and engage them on a personal level. Creating high quality customer relationships is the key to effective marketing.
Current Customers Buy More than New Customers
A major reason to focus on customer relationships is the simple truth that current customers invest more money than new customers. In fact, current customers statistically spend over three times as much on products and services as first-time customers. It’s no secret that a relationship between a customer and a brand is profitable.
Finding Customers Costs Money
One of the most common business marketing mantras is that it costs six times as much to create a new customer as it does to keep an existing customer. This statement is one of the strongest points for the argument in favor of expertly managing customer relationships. Finding a new customer requires a lot of work, time, energy, and money. These resources are finite in the business world, and if you can preserve current customers by establishing a mutually beneficial relationship with a client, you’ll have more resources to direct elsewhere.
Businesses that thrive on one-time customer relationships do not have a solid foundation on which to build profits. When you put very little energy into preserving current customer relationships and focus, instead, on finding as many new customers as possible, your profit margins will slowly level out before starting to fall. Unless you devote considerable energy to keeping the customers who have already slipped through the conversion funnel and paid for your products and services, you’ll never be able to expand and develop your business reach.
Not only do new customers cost your brand a great deal of money, but old customers can actually help to save your business money by doing some of the heavy marketing work for you.
Loyal Customers Do Your Job for You
Loyal customers can be the best and most effective marketers for your company. The modern marketer is incredibly relational in his or her approach to commerce. Consumers today share their opinions on public forums, in customer comment forms, and through social media. When a consumer is looking for a particular product or service, he or she will likely pose a series of questions through social media. By relying on other consumers’ opinions, the customer in question will be directed to the brand that provides the best product and most effective customer service.
When you invest money in your relationships with customers, you are actually helping to grow your network through word of mouth, social network sharing, and client recommendations. You may not realize just how effective and valuable your efforts are, but the number of new clients you generate without spending a dime on marketing strategies will prove the worthiness of high quality customer relationships. A single customer who is loyal to your brand may take thousands of dollars’ worth of marketing costs off your hands in a single fiscal year. This allows you to invest more money into improving current customer relationships. The effect of this pattern will snowball, and the new customers will start rolling in.
Improving Your Customer Relationships
It is crucial to improve the relationship your business has with existing customers. Thankfully, the Internet provides thousands of ways to reach customers on a more personal level, ensure that customers are satisfied with the service and products your brand is providing, and create profitable relationships with loyal and happy customers.
Improving customer relationships can’t be looked at as a checklist of tasks that can be completed one by one. The process of forming mutually beneficial relationships with customers takes a little trial and error, a lot of hard work, and a great deal of invested time. The following tips may provide you with a general approach to improving customer relationships. Your specific plan, however, will depend largely on your brand, the size of your network, your industry, and exactly what your brand can offer to customers.
Sharing High Quality Content
One of the best ways to establish a high quality and dependable customer relationship is to consistently post high quality content to your social media network pages and your brand’s website. Content marketing strategies are considered by most to be the wave of the future in marketing. For years, businesses neglected the customer in favor of pleasing a search engine algorithm. Those days are fading, however, as more and more businesses are realizing that the satisfaction of the customer is the best way to generate more profits.
By creating content that is beneficial to your customers, you establish a reputation for putting your consumers’ needs before the needs of your brand. Customer will gradually begin to trust your company and rely on your brand as a source of information, answers to questions, and helpful content that will improve the quality of their lives.
In order to take customer relationships to the next level, it’s important to follow up on all new customers and customer communication. When a customer believes that his or her opinions are valid and valued, he or she is likely to continue interacting with your brand. A one-sided conversation cannot develop into a relationship. As they say, it takes two to tango.
Putting the Customer First
Above all, it’s crucial to put the customer first in all things. This approach will dictate the special offers and coupons that you make available to customers, the content you post on your website, the products and services you offer to clients, and the way you approach customer service. Putting the customer first will help you make money, while developing lifelong relationships between your brand and your clients