Business relationships are not that different from personal
relationships because in both situations, people prefer to
deal with someone they like.
However, you can't move from being a stranger straight to
being a best friend or customer.
So it's important to put at least as much effort into your
plans for keeping in touch with existing customers as you
do for attracting new ones.
A key benefit of building long-term relationships is that
it typically costs some six times more to sell something to
a prospect than to sell that same thing to an existing
customer.
But, of course, it's one thing to know the value of
building long-term relationships and another to follow the
steps required in order to do so.
Here are seven steps to turning one-off customers into
valuable client relationships.
1. Concentrate on getting the second sale
Ultimately, people are only customers if they buy from you
regularly. And many people will buy from you once and never
again. So, to turn someone into a genuine client, the most
important thing is getting the second sale from a new
customer - and getting it as soon as possible. After that,
they are more likely to stay with you and build the
relationship.
2. Always act in their best interests
According to Kevin Hogan's book 'Psychology of Persuasion',
people are more likely to do what you ask if they believe
you have their best interests in mind. This is the 'Law of
Friends'. So, to build a business relationship, you need to
show clients that you are looking after their interests.
As with personal relationships, that sort of trust can
normally only be built over time. One step is to stop
worrying about getting clients to like you and focus on
looking after them. As 'Built to Last' author Jim Collins
says: "Don't be interesting. Be interested." That helps you
think of them as individuals.
3. Keep in touch regularly
You can build trust through a regular newsletter which
gives valuable information - rather than simply promoting
your services. Other methods of regular contact include
sending regular postcards and articles or conducting
podcasts and teleseminars.
4. Make your contact personal
To make your contact with customers personal, you need to
learn about them. You can start by just listening to them -
for example by posting a survey on your website or sending
out a customer questionnaire. The more you know about their
likes and dislikes, the more personal you can make your
services - for example sending them clippings you know will
interest them or recognizing their personal achievements
and family events.
5. Recognize that satisfaction is not enough
People will not stay with you and build a long-term
relationship because they are satisfied. They expect that.
You need to deliver exceptional service - some describe it
as 'customer bliss'. You need to exceed their expectations
- give them more than they anticipated; care about them
more than they are used to being cared about.
6. Ask your customers to help you
Once you have built a good relationship, you'll often get
help from your customers. For example, they'll give you
feedback on what needs improved or they'll provide
referrals and testimonials to use promoting your services.
The added benefit of this is that the laws of psychology
show that when people have helped you in this way, they
will act consistently afterwards and are therefore even
more likely to buy from you again.
7. Focus on your most profitable customers
Typically you will find that 80% of your profits come from
20% of your customers. So you need to understand which 20%
are most profitable by looking at the Lifetime Customer
Value, which is the total amount somebody would spend with
you over their time with you as a customer.
Building long-term relationships is no easier in business
than in your personal life. But it can be extremely
rewarding.
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Robert Greenshields is a marketing success coach who helps
entrepreneurs and independent professionals to develop the
right mindset and marketing strategies for higher profits.
Sign up for his 7 free secrets of making your marketing
more effective at http://www.PersuasiveMarketingPower.com
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