Are we bent on getting as many single impressions with our prospects as possible with our available budgets, or do we focus on achieving enough interaction throughmultiple touch points to help convert prospects into first-time buyers, first-time buyers into ongoing clients, and clients into loyal advocates?
Here’s a quick illustration of two real-life scenarios:
Business person #1 has enough money to make 10,000 impressions, so he makes a single impression with 10,000 prospects. His conversion rate is 0.5%, so he gets 50 new buyers. Not bad, perhaps, depending on industry and margins.
Business person #2 also has enough money to make 10,000 impressions. She chooses to make five impressions each with 2,000 prospects using the same budget. She achieves a 5% conversion rate, yielding 100 new buyers—twice the number for the same money.
As impressive as this reality is, here’s where the real difference comes into play…
Business person #1 runs the same scenario again to get the revenues he needs for next month. Sure, some of the people who have bought from him in the past make additional purchases, but he doesn’t do much to foster a long-term relationship with them. His focus is always on bringing new people through the doors (literally or virtually).
Business person #2 knows if she keeps a large percentage of her clients active, that’s good for her business in the long run, so she reallocates half her marketing budget for client retention activities. This means she’s only bringing in 50 new clients a month now through her initial acquisition activities, but well over half the clients she brings into her fold stay and keep buying from her because of her proactive relationship-building efforts. Furthermore, they become her ambassadors, bringing new clients into the fold with simple incentives that add to their positive experience with her company.
Over the course of just a few months, business person #2’s client base is considerably larger than that of business person #1. Over the course of years, you can image the difference.
Simple? Yes. Easy? Apparently not, since business person #2 represents an extremely small percentage of the business owner population with regard to their approach to initial customer acquisition and client retention.
In the end, business person #2 isn’t #2 at all. She’s #1 in the minds of her clients.She’s their #1 choice for what she provides, making her a client loyalty superstar with industry-leading revenues and profits.