There are three C’s that are essential in marketing: customer retention, customer development, and acquisition of customers. When you’re a business owner, when you plan your marketing budget, having an understanding of these three C’s and which one you should be focusing on is essential! Let’s take a look at each one of them individually.
Customer Retention:
According to businessdictionary.com the definition of Customer retention is: “An assessment of the product or service quality provided by a business that measures how loyal its customers are. Customer retention statistics are typically expressed as a percentage of long-term clients, and they are important to a business since satisfied retained customers tend to spend more, cost less, and make valuable references to new potential customers.” The ability to accurately assess the customer retention of your business is vital. How many long-term customers as well as returning customers can you count on? A variety of factors contribute to the retention of customers. Quality of the service or product and the level of service your employees and you provide your customers are crucial to the retention of customers. Regularly reviewing these essential elements and keeping track of the lifetime value of your customers will assist you in assessing your retention of customers. If you’re not doing this, it is the chance that your business is struggling because of it.
Customer Development
according to Francis Buttle author of Customer Relationship Management “Customer development is the process of growing the value of retained customers.” This can be accomplished through two methods: up-selling and cross-selling. Up-selling means selling higher-priced or with higher margins of products or services to faithful customers. Cross-selling means selling products and services to your customers who are loyal. The products could include accessories, related products, or services. The business aspect needs to be taken into consideration when decisions about new products or services to produce or offer are being considered. The more requirements you can meet for your clients, the more loyal they will become consequently the more valuable to your company they will be.
Customer Acquisition:
According to businessdictionary.com the definition of customer acquisition is “The process of persuading a consumer to purchase a company’s goods or services. The cost associated with the important customer acquisition process is an important measure for a business to evaluate in combination with how much value having each customer typically brings to the business.” It is the procedure that entices customers to purchase your product or service the first time. It is typically accomplished via advertising. Advertising is the most important factor to get new customers through your doors. Author of the book Marketing Stewart Britt says “Doing business without advertising is like winking at a girl in the dark. You know what you’re doing but no one else does!” This is the truth! You might have the most effective product or service available however if no one is aware of it, then the chance of them visiting your company is very slim. Advertising that is done correctly, with compelling messages that reach your clients wherever they are in their everyday life, is vital for boosting your company. This is why advertising must be the top priority for every business owner. It is impossible to retain or grow the client does not exist. Customer acquisition should be the top priority for any company which wants to grow. Determine the type of clients who provide the greatest value to your company. You can then focus your marketing on the demonstration.
Inviting new clients from your top group by opening your doors is the most effective method of CUSTOMER acquisition. It doesn’t mean you must avoid other groups. However, you must make sure that focusing on this group is the main focus of your marketing. Making sure that you provide them with top superior products and services with outstanding customer service is essential to CUSTOMER RETENTION. Make sure to meet the needs of those customers as you can and ensure they return every time to CUSTOMER Development. Putting these three C’s together will increase the success of your business in no time.
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