Right now, finding new customers is easier said than done, but relationship marketing could be your ticket to surviving and thriving. After all, there’s no better asset to a business than its customers. Relationship marketing places a high value on the customers you already have and focuses on how you can continue to serve them so they keep doing business with you. The idea is to go above and beyond what the customer expects from you and continually keep in touch with them. This includes sending monthly newsletters, communicating via email, offering monthly specials, and providing loyalty and referral rewards. In turn, your customers will remember your name and be more likely to recommend you to their friends and family. People take the word of their loved ones very seriously, and your customers could serve as the driving force you need to get new business in the door. In fact, studies point to consumers placing a higher value on the word of their loved ones than advertisements. It’s one thing for you to talk about your customer service, but it’s a whole other ballgame to hear about it from one of your customers. In addition, this constant contact with your customers gives you a plethora of feedback opportunities. When your customers trust you, they are honest with you, and you learn more ways you can grow or find weak links in your process. Granted, relationship marketing can be one of the more expensive marketing tactics, but according to Harvard Business Review, a 5% increase in customer retention can translate into 25%–95% profit increases. That value is worth more than a little extra investing. Now more than ever, you must focus on the customers you are already serving. Get your team together and collaborate on the ways you can show up for your customers, encourage them to recommend you, and wow them into becoming lifelong clients. Pro Tip: If you want to get in contact with your customers on a more frequent basis, reach out to our team about this newsletter! We can connect you with The Newsletter Pro, which helps us create it each month. Maximize Your Business’s Success With Relationship Marketing YOUR CUSTOMERS MATTER
RISK VS. REWARD How to Handle Loss Aversion in Your Business
We’re all afraid of loss: loss of revenue, income, customers. We could make an incredibly long list of the things we'd rather not lose. But it’s not just loss. We’re also afraid of the potential of loss, and that fear overrides our desire to gain something. This is loss aversion, a psychological and economic bias that suggests people would rather not lose something than gain something. It’s not uncommon to see traits of loss aversion among business owners and entrepreneurs. However, successful business owners don’t let the thought of loss aversion deter their success and growth; they’ve figured out how to limit it instead. According to Daniel Kahneman, a 2002 Nobel Prize winner for his work in economic sciences, the biggest thing standing between you and overcoming loss aversion is risk. You accept that every decision you make comes with a measure of risk. Sometimes it’s minor; sometimes it’s not. Your goal is to have confidence in your decision-making, which makes it easier to overcome loss aversion.
So how do you increase confidence and reduce your risk in any given decision? The answer is data.
Let’s say you’re developing a new marketing campaign. It’s going to cost you $10,000 to run for a quarter, but you aren’t confident about how it will perform. Ideally, it brings in $100,000 worth of business, but you did minimal research. You just copied someone else’s campaign you read about online. Your first instinct may be to scrap it because you decide it’s not worth the risk. You aren’t confident in the campaign or the results, so it’s best to spend the $10,000 on a safer campaign or aspect of your business. But what if you ignore that first instinct and do your due diligence? You work together with your marketing expert or department to pull relevant data related to your campaign, like demographics, rate of interest, and deals your competitors are offering. Unless the data suggests otherwise, chances are you launch the campaign. It still comes with risk, but you understand the risk. You have data that shows your investment of $10,000 will bring in business. Confidence is key, and confidence comes from information.
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BroadleafServices.com
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