
Courtesy Wikimedia Commons
Companies big and small need to keep track of their customers. What products or services are they buying? What is their history with your company? When has someone from your company made contact with them? What kinds of offers have you sent them? All of these things should be tracked, and indeed there are many software companies devoted to tracking all kinds of information to help business owners track their customers. Why then do so many companies seem to have a right hand that doesn’t know what the left hand is doing? The answer is lack of planning.
This morning I read an excellent articles on Forbes.com by Kasia Moreno titled “Why Do Companies Undervalue Customer Loyalty?” She pointed to an experience with a major magazine where they sent her both a renewal offer as an existing customer and an offer as if she had never subscribed. Not only is it poor business for them to not even know who their customers are, but they rubbed it in by offering a better deal to the new customer than the existing one! This seems so backwards by all accounts. When it comes to communicating with customers we should know who our existing customers are and who are future customers.
Communicating with Customers, Old and New
Anyone who has been in business for very long will tell you that it is much cheaper to keep an existing customer than go out and find a new one. Keeping customers happy will keep them coming back, which is especially true to service or subscription based business models. You should be offering the best deals to your loyal customers. While you may have introductory offers for new customers, don’t underestimate the value of a longtime, loyal customer.
I am well aware of the problems that arise from not having a software package that can do everything you really want with your customer database. For small to medium sized businesses you must fit into the template of whatever software program you use. For larger businesses there is no reason they cannot develop a system for all their different divisions to use to track customers at all levels. You should not be wasting money sending new offers to existing customers.
While these things are easy to say in a blog post, I know that they can be difficult to actually implement. What processes or tools are out there to help keep track of customers and get rid of these kinds of situations?