Are You Spending Too Much Money Finding Your Next Customer?

A friend of mine, Sam, owned a café in Fortitude Valley, Brisbane.

Business was booming. The economy was strong, customers were pouring through the door, and life was good.

Then a competitor opened a café diagonally across the road.

Around the same time, the economy started to turn. Customers had more choices, money became tighter, and suddenly Sam’s business wasn’t quite so busy.

Sam had served his customers well when times were good. But there was one thing he hadn’t done. He hadn’t built a database of his customers or found a way to stay in touch with them.

He couldn’t send them an invitation to come back. He couldn’t tell them about a new menu or a special offer. He couldn’t remind them why they’d enjoyed coming to his café in the first place.

He had worked hard to win their business, but once they walked out the door, he had no way of reaching them again.

And that’s a problem many businesses share.

We’re often so busy finding new customers that we forget about the people who have already chosen to do business with us.

Think about it. You’ve already invested time and money attracting a customer. They’ve visited your business, bought your product or used your service. Hopefully, you’ve given them a good experience.

So why wouldn’t you want to build on that relationship?

Of course, having a database is only the beginning. You need a legitimate way to stay in touch, and something worthwhile to say when you do. But keeping the relationship alive gives you a chance to bring customers back, rather than constantly starting from scratch.

And there’s another opportunity we often overlook.

Your existing customers can introduce you to new ones. A customer who has a great experience at your café, shop or business might recommend you to a friend, family member or colleague.

That recommendation can be worth more than another advertisement because it comes from someone they already trust.

Your next customer might not be a stranger. They might be someone who’s already bought from you, or someone who knows a person who has.

So before you spend more money trying to attract new customers, ask yourself one question:

What are you doing to bring back the customers you’ve already earned?

It could be one of the most valuable marketing questions you ask your business this year.

The Customer Advantage, by Charles Alder | Founder, Livin La Vida

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