According to a recent survey by BIA/Kelsey and Manta, small businesses plan to spend a majority of their budgets to market to past customers. 62% of those surveyed want to put more money toward holding on to existing customers rather than bringing in new ones. And 56% say they spend the most time investing in those relationships.
In 2012, a similar survey found most were spending half their budgets on acquiring new customers. So, there’s obviously a trend in play here.
But does this trend apply to the home improvement industry? Are remodeling companies, replacement contractors, and other home pros spending time, energy, and money reaching out to leads they’ve already acquired?
Based on anecdotal evidence from our prospects and even some customers… the answer is more than likely no.
As far as best business practices go, this is a very big mistake. Why? Whatever costs you’ve incurred to acquire prospects and customers, you’ve already spent that money. And there’s always a cost associated with every lead in your database – whether it’s $50 or $500.
By spending that time, money and energy to generate new customers, you’re cutting into your bottom line.
If you have a customer – or even a lead that didn’t purchase – that could eventually buy from you again… why not take advantage of that? They know you, your company, your services, your products, and certainly your crew. They’re more likely to be receptive to your e-mails, your offers and coupons, and even your phone calls.
And it either doesn’t cost anything – or an amount significantly smaller than a new lead – to get more business from them.
Reach out to your customers to keep them in the loop: send a newsletter, set reminders to follow-up to cross-sell other products and services, offer exclusive discounts, get them to join a loyalty program, and call to ask for referrals and testimonials.
Use your CRM system to generate reminders and send automated e-mails to every happy customer you have. You’ll be surprised how much business you can generate and how many customers you’ll keep satisfied if you do.