Monday, April 20, 2009

Your current customer - your best business growth asset

It doesn't matter whether it's a recession, depression or just business as usual - your current customers are the best source of business growth. Unfortunately, too many businesses neglect their current customers to go searching after new ones.

Research has shown it takes about five times the money to get a new customer as it does to retain a current one. But just retaining a current customer really isn't enough. Why not get them to do more business with you? Why not get them to bring their friends and family to your business as well? Or in the case of business-to-business enterprise, why not get their co-workers into your customer base?

In some businesses, management believes it is solely the job of the sales force to stay in touch with current customers and try to grow the business. I would suggest however the sales force could be more efficient if the marketing team is on side with the importance of incenting current customers to grow their business.

Have you contacted your customer base to let them know you're still there to support their needs? Have you sent a postcard, letter, email? Have you told them they're appreciated? Have you demonstrated your appreciation through a special offer only to your current customers?

If you haven't, you're missing an efficient, economical business growth opportunity. If you have a retail location, invite your current customers to a small wine-and-cheese party to show off your new merchandise and have some great loss leaders to show your appreciation. If you are in the service industry, perhaps a partnership that compliments your service could be a good appreciation gift (and then you can do the same for that business).

Everyone likes to be thanked. Especially when there's gifts involved. A promotional item with your logo prominently displayed would be an excellent gift. That way your business identity stays in front of them for a longer period of time. But make sure the gift matches your branding. Don't give away a cheap pen if your business represents expensive items.

Bottom-line is: you need to stay in touch with your current customers and give them a reason to do more business with you. And if you can get them to talk about you to their friends and family, even better. Don't wait for someone else to do this for you. Get on it, right now.

Tuesday, April 7, 2009

Message match your meaning

Okay, so maybe I watch too many crime shows, but the new Air Canada television campaign is rather spooky to me. It's supposed to be the re-launch of the brand but, to me, half of it looks like a murder mystery. The smearing of red paint with fingertips is too much like writing with blood. (maybe I should seek help?)

I seriously believe an airline wouldn't want to be associated with spilled blood, so what were they thinking? The company's in trouble financially and they spend money on a high production ad that doesn't really sell any of their services but certainly puts a negative picture in my mind.

It is however an excellent example of what can happen to your marketing message if it isn't clear, concise and tested. Branding is important, don't get me wrong, but when your budget is tight, delivering messages that are high level and don't actually have a specific call-to-action are not a good use of your money (but it certainly puts cash into ad agencies' wallets). Of course, maybe Air Canada doesn't have anything positive to say about seat sales or services (that's certainly the sound of things in the media over the last while) so this weird bloody ad is all they have in their pocket.

There aren't a lot of ads, television, print or otherwise, that people take the time to discuss to discover what their impressions actually are. So you're stuck with their first impression - good or bad.

And it isn't just the words you use. In the case of Air Canada, there's nothing wrong with the words of the commercial. In this case, it's the visuals. So make sure your images are worthy of the message - both supporting it and enhancing it. For some people something as simple as brussel sprouts can be such a negative image that your brand is scarred forever.

Depending on the audience psychographics, you could find customers turning away simply because the imagery doesn't match their temperament. And the only way to know for sure is through testing or being completely in touch with who your customer actually is deep in their heart.

The more you know about your customer, the more you will be able to reach them with engaging and motivating messages. It's worth the research to not become an airline that markets writing in blood.