Commercial printing has always had a sales-focused culture. When it comes to growing their businesses, printers have always invested heavily in sales training focused on prospecting and closing techniques. While these skills are important, the ability to retain existing clients has a much greater impact on your ability to grow sales.
All growth begins with client retention. As former Allegra Chairman Carl Gerhardt noted, printers need to avoid wasting time and money on complex marketing plans until they have a solid customer-retention plan in place.
Studies show that most print providers need to add 25% new customers every year just to maintain current sales levels. No wonder growth can be so difficult. It’s hard to move the boat forward when it’s leaking out the sides! If you are not proactive about customer retention, most acquisition efforts will help you tread water, but not actually grow your sales.
Here are some additional statistics to ponder:
- Acquiring new clients costs 5x more than retaining existing ones.
- 68% of customers leave because they think you are indifferent to them.
- A 5% increase in customer retention can increase profits by 75%. (1)
- Repeat customers spend 33% more than new customers. (2)
- 80% of companies believe they deliver a superior customer experience, but only 8% of their customers agree. (3)
When customers leave, so does your reputation. Satisfied customers refer business. Former customers rarely do.
Existing customers need to know they are working with a stable, trustworthy business that understands their needs. Unfortunately, printers are often so busy pursuing new customers that they forget about their existing ones. As a result, their customers become restless and the competition is happy to pick them off. Don’t let this happen.
Here are 7 ideas for retaining your customers and building customer loyalty:
- Stay engaged, whether you are actively selling them something or not.
Maintain contact electronically, in print, and in person. The most effective way to lose customers is to lose touch with them. Communicate, communicate, communicate!
- Deliver content that provides real value to them.
Identify their pain points and offer solutions. Provide helpful, thought leadership. Not only will this strengthen your relationship and promote you as a trusted resource, but it will also differentiate you from your competition—most of which is not communicating with high-value content.
- Be multichannel.
Use print, email, website, social media. Content is king. It’s what you will be judged on relative to what your competitors are doing.
A note on website content: 67% of potential customers seek product and services information online first, and 81% of B2B decision makers use online communities and blogs to help make purchasing decisions. (4) Your website isn’t the only one they’ll visit. Potential customers will visit another three to five sites beyond yours. Your website content (blog, resources, company info) has to be great. It must stand head and shoulders above the competition.
- Be willing to admit mistakes.
Providing a great product and services does not guarantee that customers will stick around. It merely fulfills the customers’ minimum expectations—one which the competition also promises them. But delivering a bad customer experience doesn’t guarantee customer defection, either. If you resolve a complaint quickly, 9 out of 10 customers will do business with you again.
Almost 50% of people are less inhibited about complaining once they get online, so consider using email and landing pages for customer satisfaction follow-ups after every job. Everybody messes up once in awhile, but being caring and proactive can help turn a negative customer experience into an opportunity to build an even stronger customer relationship.
- Don’t forget the truly personal side of engagement, too.
Face-to-face interaction can’t be beat. Consider adding on- or off-site educational events, quick “lunch and learns” in group settings or even one-on-one, and customer appreciation events. If you can’t coordinate everything in-house, consider using outside help.
- Send letters and thank you notes.
Everyone sends a holiday card, so reach out on birthdays, special events, and anniversaries (including those of major achievements).
- Connect on LinkedIn and leverage updates and published posts to promote thought leadership and stay top of mind.
In the end, it all boils down to this: Are you doing things that other providers are not? If they are, are you doing them better? Does your direct mail (newsletters, postcards) provide more value? Does the design stand out rather than looking canned? Is it easy to reach you, particularly from a mobile device? Do you make it easy to do business with you, such as providing contact information on email signatures, responsive website design, and online resources such as available envelope sizes, conversion charts, postal information? What materials do you leave behind when you visit a client or prospect? We inherently don’t trust sales literature—Millennials in particular—so utilize customer-focused communications.
It cannot be said enough. Utilize the time in between delivering jobs to communicate. You will effectively stand apart from your competitors and strengthen your position as a trusted provider of the services you offer.
(1)www.bain.com (2) Laura Lake, (3) Bain & Company from Harvard Management Update. (4) 2016 Marketing Think./ Deborah Corn.