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Thursday, March 14, 2013

Beyond retention & up-sell: Utilizing customers as part of your marketing strategy


I'll admit it, I’ve been a marketing flirt. At the various companies I have worked for over the years, I have been asked to attract prospects—aquire leads and, well, keep them entertained and interested throughout the buying cycle. Then, like a “player”, my relationship with my prospects ends when they transition from prospect to customer. Sure, I’ve played a role in a few longer-term relationships such as creating retention and up-sell strategies over the years, but it’s never been the main focus. In most companies, managing those relationships—converting customers to fans—has fallen on the shoulders of customer relationship managers, not mine.  

However, because of the emergence of social and how it has disrupted the buying cycle—becoming a crucial element in the evaluation stage, I find myself particularly interested in the customer on a more strategic level these days.  

You see, in our socialized world, customers are the people generating a lot of the content prospects are using to make their buying decisions.  They are adding to the content stream—writing reviews, sharing their latest purchases with their networks, posting pictures of their favorite things. etc.  In my opinion, beyond retention, beyond the potential for up-sell, customers, HAPPY CUSTOMERS, are incredibly valuable when it comes to bringing in new business. However, this valuable resource is rarely tapped for this reason and often not marketed to in a way that will drive new growth.  

 As social’s role is crystallizing, I think it’s a great time for marketers to leverage the “power of the customer” and create a new communication channel around them. For a simple example, instead of sending them up-sell emails meant to get them to buy more products, reposition the email and send them a social-friendly email that gets them to share a special “friends” deal (or associates deal) with their friends. You could further incentivise them with additional discounts of their own if they share it on Twitter  or Facebook, etc.   

This example is just the beginning. The idea here is to control the message and equip existing customers with relevant tools and incentives designed to get them to share or create content online.  This content will not only spread the word to your customers’ networks, but also puts fresh content out there—content that others will inevitably come across when they do their own investigating online. It’s a self-perpetuating strategy.  

Customers are a great resource when it comes to growing business. For starters, customers offer a much better ROI—it is less expensive to keep a customer than it is to find a new one.  Adding to that, they are already invested in your product—your success is in their best interest. When they are convinced of your value, even before becoming treasured “evangelists”, they can be a driving force in the marketplace, particularly when it comes to online content. It just makes sense to make them a part of your long-term sales strategy—and not just as an afterthought. Because of their potential to influence prospects across the Internet at little or no cost, customer-focused campaigns should have as much priority as lead gathering and lead nurturing campaigns. Together, all of these elements have the power to build momentum and drive new growth over the long haul.
 
 
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