To create a recurring revenue stream, remember that cultivating loyalty among your existing clients is a major key to your success. It’s called relationship marketing.
It costs 15-25 times more to bring in a new customer than it does to retain an existing one, so the benefits of improving customer retention rates are clear.
Fostering these relationships takes strategy. Here are some ideas to help you craft a successful relationship marketing strategy:
- Make Customer Service a Priority
Relationship marketing is all about relating to your customers in a positive manner. That means offering consistent, personal Customer Service they may not get elsewhere.
- Create a Loyalty Program
Determining the best way to promote repeat business can be a tricky process but an effective loyalty program can work wonders. Maybe it’s a referral fee, or a discount for multiple milestone events — baptism, Sweet 16, wedding, etc.
- Surveys Are Your Friend
Want to get to know your customers better? Surveys are an effective way of learning what your audience wants from you and what you could be doing better in a direct, accurate way.
The most effective way to achieve a long-term relationship with your customers is interacting with them on a one-on-one basis. Relationship marketing is a unique and difficult aspect of marketing, and one that requires full engagement with your existing clients. While it may seem difficult at first, it is among the most important methods of improving your bottom line and increasing overall customer retention.
Joshua Volpe is the owner of Rochester, N.Y.-based Kalifornia Entertainment.
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