Campaigns to Existing Customers Since your existing customers are your most valuable asset, your marketing programs for this group are incredibly important. You have a number of goals: Maintain your relationship with existing customers and keep them buying Expand your relationships: upsell, cross-‐sell, and gain referrals Identify customers that are at risk of defecting Continually deliver on your value proposition and brand promise There are a number of forms your marketing programs can take: Upselling, cross-‐selling, and expanding your relationship to other decisionmakers Account penetration activities in the company Incentives, discounts or special programs to reward loyal customers, keep them Incentive programs buying and to gain their referrals Regular communications to keep your company in front of decisionmakers General communications
GENERAL MARKETING STRATEGIES Current customers fall within four general buckets. When you measure loyalty through a survey, general feedback or a purchase analysis, you can determine which customers are in which bucket. Here are suggested marketing strategies for reaching out to each group of customers. CUSTOMER TYPE
STRATEGIES (check those that interest you)
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CUSTOMER TYPE Highly Loyal: Will continue to purchase from you because you’re far & away the best solution
STRATEGIES (check those that interest you) Always deliver on your brand promise and value proposition.
Customer intimacy: Continue to do whatever it takes to please the customer and build a successful relationship. Price: Constantly monitor your competition to be sure you’re the leader. Innovation: Continue to innovate & meet their needs better than the competition. Cross-‐ and up-‐sell your primary contact. Constantly look for opportunities to provide better products to meet their needs. Ask for referrals to other decisionmakers inside and outside the organization. Develop reward or incentive programs for providing referrals and leads (as long as the program is consistent with your value proposition – see chart on next page.) Invest in programs to measure customer loyalty so you know they fall in this category. Vulnerable: These These customers are your major priority in terms of marketing dollars. Invest customers are fairly loyal more resources into your campaigns to this group. but will entertain the idea of switching to your Create barriers to exit by creating long-‐term offers and incentives to stay with you competitors (see Habitual.) Ask them how you can do better. Do it, then let them know it’s been done! Do everything you would do for Highly Loyal and Habitual customers.
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CUSTOMER TYPE
STRATEGIES (check those that interest you)
Habitual: These customers purchase from you out of convenience rather than true loyalty. Most typical when your value is price and/or your customers place small orders on a regular basis. They’re fairly easy to lure away.
Give these customers strong incentives to stay with you Long term contracts Regular discounts (if price is your value proposition) Bonuses or additional discounts when they reach certain volume levels (also most appropriate when selling on price) Make it as easy as possible for your customers to buy Your order processing systems should be very strong and simple Set them up on an automated repurchase program if appropriate
Communicate with them regularly
Dissatisfied: These customers are unhappy and will probably switch to a competitor unless you do something substantial to win them back
Measure their purchase frequency to establish whether you’re still getting their
business; if not, offer incentives & promotions Deliver on your value proposition and brand Calculate the lifetime value of the dissatisfied customer to make sure the account is worth keeping. Many dissatisfied customers are unlikely to stay long after you win them back, or they consume more time & energy than they’re worth. [Customer Lifetime Value can help] Regularly measure your customer loyalty. Try to keep Vulnerable and Habitual customers from dropping to this level.
It’s also important to consider your value proposition when developing campaigns to existing customers. VALUE PROPOSITION (check yours)
Operational efficiency / cost leadership
Customer intimacy /
POTENTIAL LOYALTY CAMPAIGNS (check those that interest you) Develop a referral program where current customers earn cash back, freebies or other special deals when they refer another prospect or customer. Lock customers into long-‐term contracts that offer better pricing and long-‐term security. Create volume programs that offer a discount when they reach a certain volume level. Offer special discounts to existing customers to get them to try new products. Generate monthly email specials and send to customers on a email distribution list. Recognition program: Host a special event or provide a high-‐value gift to thank a
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VALUE PROPOSITION (check yours) solutions
Customer intimacy / solutions
POTENTIAL LOYALTY CAMPAIGNS (check those that interest you) valued customer for their business, such as a golf outing with key employees, a special dinner, a trip, or a piece of artwork with a plaque. Create an internal reward system for the team that manages existing accounts. Nominate employees based on going “above and beyond” for a customer. Ask your customers to nominate their rep if appropriate. Create a case study or white paper that enables both companies to jointly promote your products/services. Provide valuable educational information for other companies based on the experience your companies have gained in working together.
Use this section to work out the details of the concepts you checked above. Campaign concept Purpose / goals Recipients Timing Use the Marketing Campaigns section to help you further plan and launch your campaign if needed.
ACCOUNT PENETRATION ACTIVITIES
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Can you “up-‐sell” an upgraded product/service to your current customer? Can you increase the number of units s/he purchases? Can you “cross-‐sell” sell additional products/services to your existing contact? Can you sell to other contacts within the same company?
If you have personal relationships with your customers, you can put together account maximization plans on a one-‐by one basis.
ACCOUNT MAXIMIZATION PLAN Use this form to help expand your relationship with each customer. CUSTOMER PRIMARY CONTACT ACCOUNT MANAGER DATE
Product(s) this contact purchases
Up-‐selling: Can we upgrade this customer to a better version of this product, or can we increase the volume? Cross-‐selling: What other products or services can we market to this contact? Is this contact willing to offer a testimonial? Are there any ways we can jointly promote our relationship and build both businesses? Can this contact refer us to other potential customers inside or outside the company? Track your referrals below.
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CONTACT / INFO (ask your primary contact for introductions)
What type of products / services might this contact need?
NEXT STEPS
PERSON
DUE DATE
If you have a large group of customers and need to plan your penetration campaigns on a broader basis, this section can help: Customer segment
Products this segment uses Upgraded products / services these customers can use Ideas for increasing the number of units they buy Supplemental products / services these contacts could use Other departments in their companies that could become customers
NEXT STEPS
PERSON
DUE DATE
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ONGOING COMMUNICATIONS PROGRAMS It’s important to supplement your campaigns with ongoing communications programs. By doing so, you can Share relevant news about your products and your customers Keep your company in front of decisionmakers Reinforce the value you provide Create a forum for generating feedback about your company First, decide how often you want to “touch” your customers. [Customer Lifetime Value can help] Customer segment Average lifetime value of customers in this segment Frequency of purchase Frequency with which you should reach out to customers (based on purchase frequency) Once you have a basic frequency in mind, here are ideas for different types of basic communications: COMMUNICATION PROGRAM IDEAS Thank you for purchasing: Send a letter from your CEO, a card, a small gift. Make sure you convey your value proposition; for example, if it’s intimacy, send a handwritten note; if it’s price, send a rebate or future discount coupon. A phone call to make sure the first purchase or experience has gone smoothly: Consider having the CEO or other VIP place the call if your value proposition is intimacy or innovation. Newsletter: Create a newsletter to keep in touch with your customers. [Sales Tools and Literature can help] Anniversary note, gift or discount (based on your value proposition): Send an acknowledgement and thank-‐you to customers for staying with you for a certain period of time. Unexpected holiday campaigns: Send out a unique card or promotion tied to something unexpected and theme the promotion around Thanksgiving, July 4, or any non-‐traditional holiday.
CONSIDER? Y
Y
Y
Y
Y
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COMMUNICATION PROGRAM IDEAS Happy Birthday: Gather your customers’ birthdays and send well-‐wishes. News flash: Send your customers an important announcement or news coverage that you’re sure will interest them, and include handwritten note or a short cover letter explaining how it relates to them. Once you have a list of ideas, build a schedule for all of your communication programs. MONTH OF RELATIONSHIP
COMMUNICATIONS TO LAUNCH
1
2 3
4 5
6
7 8
9 10
11 12
ETC.
CONSIDER? Y Y
You can also build a schedule tied to specific industry events, normal holidays, etc. MONTH COMMUNICATIONS TO LAUNCH JAN FEB MAR
APR MAY
JUN JUL
AUG SEP
OCT
NOV DEC
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