How To Turn Current Customers Into Business Assets

Is it better to sign a new client or keep an old one? Since the start of civilization, business owners have sought new and innovative ways to ensure their current customers keep coming back. Centuries later, researchers confirmed what merchants knew many centuries ago. "It's five times cheaper to keep customers than to get new ones."

In a digital world where customers can get whatever they want at the touch of a button, it's more important than ever to turn customers into valuable business assets. The best thing is, you already have all the tools you need to turn your current customers into the most valuable assets.

Emphasize quality service

Any serious business owner will tell you that if a customer has a great experience with your business, chances are they will always come back. Quality service is the backbone of repeat business, since satisfied customers will convert from walk-in clients into loyal followers.

At the end of the day, you should treat all your clients equally, whether they're purchasing $1,000 worth of goods or $10 worth. Offering the best service to all customers builds long-term relationships that are beneficial to business growth. In the digital era, quality customer service is created by great communication and timely delivery of goods or services. Remember, if customers feel you have their best interest at heart, they will reciprocate with referrals, reviews and the ultimate commodity -- their business.

Personalize communication

While you should never mix business with pleasure, one strategy that never fails is building strong relationships with customers. In every business deal, always ask yourself, "What does my client need?" and work to solve that problem.

Personalization in your emails, newsletters, and in-person interactions shows customers that they're valued and cared for. As a business, train your employees to develop a personal touch with customers and avoid blanket treatments. You can use CRM and contact management software to remember unique customer preferences, interactions, and feedback. Every customer has value.

Offer customer loyalty programs

Everyone feels great when they're appreciated. In a business, showing loyal customers that they're valued is key. Customer loyalty programs provide incentives to customers as they encourage them to choose the business over the competition.

To understand the power of well-designed loyalty programs, just look at companies like Starbucks. Their rewards program gives customers 1 star for every $1 spent and when accumulated, the points can be redeemed for coffee or merchandise. Loyalty programs show customers that you're loyal to them, too.

Customers consider attractive marketing offers

Customers pay for what they know. But if they have options to choose from, they'll always weigh out the benefits. When interacting with customers, try up-selling and cross-selling strategies for encouraging upgrades.

Help clients understand why purchasing related products is valuable, despite the additional costs. A modern approach that helps businesses achieve this goal is targeted marketing campaigns that learn from a customer's history and preferences. Choose marketing efforts that appeal to your target clients, and provide customers with offers that match their purchasing history.

Invite customers to refer new business

"Word of mouth" referrals are a strength that all businesses can tap into to advertise their products in a competitive market. A survey by Nielsen, a leading research company, found at least 83% of people across 60 countries trust products or services that their friends recommend.

To take full advantage of referrals, start by introducing programs that provide incentives to your customers. Some businesses ask for referrals directly from their clients and thank them later with personalized "thank you notes." Others take the challenge further by offering discounts to customers with every new conversation after referral.

Either way, your current client database is a gateway to more business.

Partner With Ambassadors

In the business world, there's a statistic floating around that "80% of business sales come from 20% of customers." The statement refers to the reality that full-service customers offer the best benefits to a business. To succeed, a business needs to concentrate its energy, time and revenue on the best customers.

Successful businesses know that their best customers can become brand ambassadors and the best voices behind new products. A great example is actor Dwayne Johnson, a loyal Ford customer and a favorite choice for a brand ambassador. As Ford's ambassador of service, Johnson was featured in advertisements and highlighted the achievements of the auto company. Your best customers are great marketing assets.

It's not too late!

Customers are important intangible assets, but many businesses make the mistake of underestimating their value. In a competitive market, the difference between success and failure lies in the efficient management of customers who can either make or break a business. The good news? It's never too late to start treating your customers right. Ultimately, if growing your brand is your goal, seeing customers as valuable assets is the best decision you'll ever make.