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Plug Those Leaks!
By John Joyce, President
Red, Incorporated
Strategic Marketing and Design
If you own an older home (mine is celebrating it's 95th birthday this year) in Northeast Ohio, in the wintertime, with these rising gas prices, there is a certain ritual that you no doubt take part in. Every year, when the weather turns cold and the snowflakes fall, out come the holiday decorations - and along with them, the storm windows. Homeowners from big to little scout around the house, feeling for drafts at windows and doors, with caulk or a can of foam insulation, or new weatherstripping in hand. There's plastic sheeting for windows, extra thick insulated curtains, another layer of the pink stuff in the attic, and our favorite warm slippers to keep our feet toasty. However this ritual took form this year at your house, the goal was the same: Plug Those Leaks! You're paying good money for your heat and you want to KEEP it!
The same concept applies to your business, here's how:
You're paying good money to get a new customer. Even if you don't do much advertising, it still takes a sizable investment of time and effort to get that first sale. Most businesses concentrate the majority of their marketing efforts on that new customer. The problem is, if you don't do anything to KEEP that new customer, to nurture that relationship, or provide them with 'back-end' products or services, it's like heating a leaky house. All your precious warmth is silently slipping away into the cold night air, forcing you to spend more and more money on heating ... all the while the cost of gas climbs steadily.
Statistics show that it is 6 times more difficult (i.e. costly) to get a new customer than it is to re-sell an existing customer. You've already gone through all the time, effort, and expense to find that customer who needs you, and to win their confidence - they'd be glad to buy from you again. Then why don't we pay more attention (and take more effort) to keeping in contact with them? Why don't we make sure we have something else to peak their interest, and be there when they need us again? In most business it's an afterthought compared to getting that next 'new customer'.
The answer may be as complex as our own human nature, but I think it boils down to the fact that we tend to take for granted that which we already have, and focus on what we hope to attain. That's not a good recipe for long-term success in life, or in business. During the holiday time of year, we give thanks and celebrate the past year, our families, and the wonderful relationships that we enjoy. As we move into the new year, looking forward to all that lies ahead, let's make sure we keep close to what we already have, or IT may just slip away silently, into the night.
