In Search of the Elusive Customer

A recent survey sought to find out why customers stop shopping at a business. With over 2,000 people surveyed, here's what they said:

• 9% left because they moved out of the area
• 9% left because they went with a competitor
• 14% left because of unresolved complaints
• 68% had no reason for leaving...they simply forgot.

Imagine, a STAGGERING 68% didn't come back because they simply forgot. But that's not the customer's fault. It's OUR fault if we don't remind our customers to come back.

So the first thing we should have in place is a sure-fire way to collect our customer's information. That way we can follow-up with them regularly. Even just to let them know we're still here. Known by many names, "touch marketing" or "drip marketing," we need to constantly be in our customer's presence.

So our existing customers remain the #1 easiest target market in which to sell.

What market is the next best?

Well, stop and consider the last time you needed an accountant for your business. Or a new dentist or doctor, if you just moved into a new area. Or a new mechanic to fix your car. What do you do?

Do you pop open the Yellow Pages, or stop by the first one you see on the road?

Well, maybe, but probably not.

You probably asked a friend or relative or someone you trusted to suggest one that they use. And you ask them how satisfied they've been with their work and customer service.

In fact, studies have shown that only about a third of your "new" customers come to you because of your marketing and advertising.

The other two-thirds? Referrals.

Think about it. The referrals trust the people they are referred by, so you've already got your foot in the door with them. They are apt to be more relaxed and have their "sales shield" down, second only to your existing satisfied customers. You'll be able to capitalize on that fact.

And since you'll always need a fresh supply of new customers to replace the ones who have left, this is a very cost-effective way to do so. Because your existing satisfied customers send these referrals your way, your cost per lead goes way down.

And as an added bonus, they'll be more likely to refer others because they were referred. It's one of the most cost-effective ways to get new customers that I know of, because you're leveraging the lower cost of your existing customer.

Now, there's one other type of customer that I'm going to talk about in my next post. And bringing in this kind of customer is a lost art for many businesses. Can you guess what kind I'm talking about?

In the meantime, feel free to post some methods you use to encourage referrals to your customers. I'll take the best of the best, add some of my own and other ideas from other marketers, and compile it into a report for you all.