"Go Fish" (Part 2 of 2)

In Part 1 of this series, we defined “marketing” as “the function of catching and keeping customers”, and we discussed the “three rules for catching customers”.

Here, in Part 2, we’ll look at the important strategies for “keeping” customers.

Here’s an amazing (and “eye-opening”) statistic: A recent report from McKinsey & Co. found that eCommerce web sites are spending an average of $ 250.00 in advertising & promotion to acquire one new customer, but the “average” customer spends only $ 24.50 in the first quarter and only $ 52.50 in every quarter after that. At that rate, it would take six calendar quarters (18 months) to recoup the initial “customer acquisition cost”. To compound the problem, the same study found that two-thirds of buyers don’t make a repeat purchase.

Based on the results of this study, it’s no wonder that online companies involved in the “new economy” are having survival problems. Without the all-critical “repeat purchase”, the “new math” just doesn’t “add up” to success.

So, how does a company ensure its future success via repeat purchases ? The answer to this question lies in making the customer’s first (and continuing) purchase experience a pleasant one.

It’s true that “great advertising can bring you customers, but poor customer service can lose them forever.” So, let’s take a look at the three important rules for “great customer service”.

The first rule for “great customer service” is: “make it easy to buy”. This might include:

	convenient hours of operation (i.e., you’re open for business when it’s convenient for the customer),
	make it easy for your customer to find the products & services they want to buy (especially important when navigating a web site),
	make it easy for the customer to ask you a question and receive a prompt & accurate answer,
	make it easy for your customer to pay you (e.g., accept all major credit cards, or offer a payment plan),
	offer an extended warranty, trial period, sample size, and/or money-back guarantee,
	offer a “special incentive” for first time purchasers (e.g., free shipping, free gift with purchase, special discount, automatic entry into a sweepstakes, etc.),
	provide a client list and/or client testimonials to “lower the perceived risk” of a first time purchaser.

The second rule for “great customer service” is: “give them a reason to buy again”. This might include:

	special overnight delivery (at no extra charge) for first time purchases to ensure “instant” satisfaction,
	call, write, or email first time customers within 48 hours of purchase to thank them for their order and to inquire about their satisfaction,
	include your current catalog, or a list of “special offers”, in the shopping bag or shipping carton along with their purchase,
	provide an additional “discount coupon” redeemable on their next purchase,
	enroll your customers in a “frequent customer” program so that they’ll earn “points” or other valuable incentives every time they buy from you,
	“greet” each customer “by name” every time they visit your store (or web site), so they’ll know you appreciate their business and continued patronage,
	immediately resolve every customer problem to their satisfaction.

The third rule for “great customer service” is: “stay in constant communication with your customers”. This might include:

	asking your customers to subscribe to your free newsletter,
	send out “special announcements” to your “preferred clients” with advance notice of upcoming sales events or new product introductions,
	survey your customers every 6 months to find out what their current (and future) needs, wants, and desires are,
	provide additional web site content (e.g., news, information, tips, bulletin boards, chat rooms, calendar of events, etc.) that your customers are interested in,
	track your customers’ purchase activity and send a “we’ve missed you” letter (along with a discount coupon) to those customers who haven’t bought from you in the past 3 months,
	invite your customers to your semi-annual “Customer Appreciation Party”.

The key to successful sales growth is repeat sales. So, don’t forget the all-important “other half” of marketing – “keeping” customers.

If you follow these three rules for “great customer service”, you’ll be sure to “keep” more of your current customers. And that will “add up” to a great future for your business.

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