A Bird in Hand

I had recently had meetings with three organizations; the first was an online retailer that told me that they have very little repeat business despite their selection. Another merchant (catalog, web and B2B store presence) told me that half their hits on search come from existing customers. The third was a bank that gives away $50 to open new accounts, yet only one in 20 of the people opening these accounts actually establish more than one other relationship with the bank. These numbers are disappointing, but not atypical.

We spend so much money on acquiring new customers, but very little is done to take care of the existing – our focus should start from within, by nurturing existing relationships. Start with a thank you email that is personal; follow up with a call (even a voicemail will do). The goal is to establish a dialogue to thank the new customer and solicit feedback to improve your process.

After the initial email (and/ or discussion) put the customer on a recurring campaign to introduce them to your brand; highlight certain parts of your business and make sure that your dialogue is educational. Regularly solicit their feedback on your campaigns.

It might seem like too much work, but keep in mind that if you compare this with the cost of new customer acquisition – it is only a part of the overall cost.

To the first company, I suggest creating an email help desk to call customers, thank them and solicit direct feedback about their experience. Follow this up with two to three campaigns that inquire, educate and introduce recipients to other parts of the business.

To the second company, put the customer on a recurring stream of communiqués – part of your bonding program. Send them a sample, solicit their feedback and keep in touch.

Finally, to the bank, make the recipient tell you more about themselves in exchange for the $50. Then assign a rep to this newly acquired customer – make it their responsibility to stay in touch with them over the first four weeks. The goal should be to make them aware of the services your bank has and see if you can help the new account holder meet their personal goals.