Your current customers are generally your best source for revenue. You have a relationship with them. You can contact them with new information and new opportunities. To maximize customer marketing your processes need to be top notch. Your customer service needs to be excellent.
This assumes you know which customers to market to. This module discusses the process for selecting a customer database for marketing purposes.
Market your products to you customers if you want to survive. It’s a tough lesson to learn and you don’t want to learn it the hard way.
If you have an existing business or if you are starting a new business you are no doubt going to learn a lot about customers. Talk about the importance of customers is abundant. Businesses are always in a transition phase with customers as the customer base rises and falls.
It costs eight to ten times more to create a new customer than it does to keep a customer. If this cost of marketing doesn’t impress you nothing will. Customer marketing is your most lucrative source of revenue.
The Values of a Customer
The foundation of all marketing is the value of gaining a new customer. Many values come from a customer base. I have found most companies completely underutilize their customer base. Relationship capital is a new term you should look up on the Internet. It’s the thing.
Here are several positive values to a customer relationship. Make a list of the customer value you are capitalizing on in your marketing.
1. Financial Gain of a Transaction
Revenue produced from a sale to the customer
Costs of selling to the customer
Profit margin of the sale
2. Payment and Terms
Payment performance of the customer
Terms of payment of the customer
3. Future Gains
Frequency of purchases by the customer
Amount of purchases by the customer
Profitability of the purchases of the customer
Exclusivity of the purchase commitment from the customer
Five-year value of the customer
4. The Customer’s Company
Location of the company
Size of the customer’s business
Financial stability of the company
Reputation of the company
Market exposure gained by the company
Market stability of the customer’s industry
5. Marketing Relationship Potential
Sphere of influence of the customer
Good word of mouth advertising from the customer
Cooperation of the customer on a marketing level
Potential for coop advertising or cross promotion
Quality and size of customer database of the customer’s company
Customer profile of the company’s customer
Symbiotic, competitive or unrelated product line
Marketing needs of the customer
Future marketing relationship potential