One of the most overlooked aspects of business models is the importance of long time customers. Although most owners realize that maintaining long term relationships with customers to keep them coming back is important, no one keeps the numbers on how much that one, lifetime customer has spent there. If the owners had kept such numbers, customer relationships would be stressed more by other businesses, since recurring customers generate sheer profit. What this means is that, since they have been a customer for so long, you are not spending money to advertise to them or trying to get them to purchase your products. They are coming to the same store because they trust you and your products, so their patronage is almost pure profit. If more owners saw the profit margins from recurring customer, we can be sure that more time and money would be spent in customer acquisition and retention efforts.
One of the best ways to retain customers is through monthly newsletters. Since it is very cheap to print and mail a newsletter to your customers, there is no reason not to consider doing this to build relationships with your customers. There is no monetary risk involved with these newsletters, and it will definitely work to produce revenue for your company. Newsletters, if done properly, will work miracles for your business and will keep your customers coming back time and time again.
Newsletters are quite possibly the best dollar for dollar investment that your company can make and is an extremely effective marketing tool. Here are just a few of the benefits of having a company newsletter:
- Newsletters increase brand awareness
- Newsletters build relationships with past customers and possible new ones
- Newsletters are great for introducing new products and services
- Newsletters augment your reputation
- Newsletters stay around longer than other marketing ploys
- Newsletters are usually passed along to family and friends
- Newsletters differentiate you from other businesses that do not stress customer relations
Statistics show that it is more expensive to gain new customers than it is to keep existing
ones. Another rule to keep in mind is the 80-20 rule, which states that 80% of a company’s profits come from 20% of its customers. If this rule is true, and many people believe it is, than most companies should consider newsletters and costumer relations a vital area of their marketing efforts. Companies that invest their money in customer relationships instead of new customer acquisitions will be sure to increase their profits. In today’s troubled economy, every business should try to maintain their existing customers to ensure they stay in business. If you have not already started printing and distributing company newsletters, there is no better time than now to start.