Here is a question for you. When customers move on – how do you stop them from moving on from your business? Here is the answer. Keep contact details and follow up on returned email.
Why don’t businesses care enough about keeping customers to keep their databases updated?
The cost of changing a record is minimal compared to the cost of finding a new customer to replace the last. Yet many companies particularly those who have access to extraordinary information about customers, are the worst offenders. I have personally sent back letters from superannuation, insurance and utility companies stating that the person no longer lives at the address. What happens? Nothing! A month later there is another letter.
Apparently everyone moves on average once every seven years. Business should be prepared for this and have systems in place. Why don’t companies track down customers rather than lose them? Have they not heard that it costs 10 times more to get a new customer than to keep an old one? My bet is that a customer would be so delighted to be tracked down they would be happy to continue doing business with you.
Are times tough or our businesses just slack in keeping customer contact records!
Small business can gain an advantage here.
- If you haven’t checked your customer’s details in the last two years – you should.
- Try and keep more than just address or phone number try and get both
- Most people move within one kilometre of their last residence – it’s not hard to track them down they may even have the same phone number.
- The money or investment in tracking down customers will be less than finding a new one.
It just makes good marketing sense, good business sense and good economic sense!