Lesson 3 - Re-focus your marketing
In the last lesson we discussed how much of modern marketing is focused on helping new businesses acquire more customers. While that's fine for them, I pointed out that existing businesses don't have the same challenge because you have an existing roster of customers.
Why does that matter? Think about it this way: If you don't need to sell to new customers, you also don't need to spend any time or money marketing to prospects. And since you have all this extra time that you're not spending trying to acquire new customers, you can go deeper into your relationships with current customers.
As reported in Harvard Business Review, there are a few reasons why it's a good idea to market more to your best customers:
- You'll get more ideas related to existing products or services: "They are especially interested in innovative uses for the product and in new variations on it. They aren't particularly price sensitive. Superconsumers tend to have more occasions and 'jobs' for a product."
- They want to buy more: "...these shoppers have good reasons for buying so much, but also often discover a hidden appetite to buy more—even in the most unlikely product categories."
- They're more responsive to your marketing: "Because superconsumers are already buying your products, it's easy to reach them. This means that you can dramatically increase the efficiency of your advertising and promotions. Instead of trying to activate lapsed users through expensive mass-market campaigns or paying large sums to deliver coupons to customers who haven't bought your product in months (and probably won't buy it now), you can focus your efforts on a narrow slice of your customer base. Direct and digital marketing are often much more effective with superconsumers than with others."
- They can help a lot with new product development: "Many superconsumers are superb at offering insights that can drive product strategy. Because they are passionate about the category, they are an ideal audience for testing out new-product ideas—and in many cases, they themselves are the source of new ideas."
And remember, you don't have to pay to get leads that will hopefully turn into new customers. The fact is — and I know I'm stating the obvious here — that your customers have already been acquired!
So what would happen if you started selling mainly to your existing customers? What could you learn from them that could transform your business — and your profits?
In the next lesson, we'll discuss the value of your existing customers to your business.