Brand Advocacy and Customer Retention: How to Maximize Your Current Customer Database
Most home services businesses acquire new business through service calls and installations. Once the call is done, those names go into a customer database, and that’s usually all that happens. The information just sits there, essentially forgotten and unutilized until the next time that customer calls.
If this sounds familiar, you could be missing out on a major opportunity to tap into existing customers and keep them engaged with your brand, with the goal of achieving the maximum lifetime value (LTV) from your customers. Here are a few steps you can take to make the most of your database to keep customers coming back.
Repeat Customers Cost Less and are More Profitable
It costs five times as much to attract a new customer as it does to engage an existing one, which means you’re actively driving up your marketing costs by ignoring your existing customers in the constant pursuit of new customers. While businesses need new customers to succeed, there needs to be a balance of old and new to stay profitable.
Existing customers are also easier to convert and more profitable than new ones. The probability of selling to an existing customer is 60-70 percent, while the probability of selling to a new customer is 5-20 percent. Existing customers also spent 30 percent more and are 50 percent more willing to try a new product or service. If you’re looking to test a new product or upsell, tapping into your existing base could be a great way to test it.
Know Your Database Maximization Strategies
To make the most of your database, you have to figure out how to simultaneously ensure it’s filled with loyal brand advocates, and you have to engage in strategic prospecting and coordinated sales efforts. Here are five strategies for making the most of your customers and keeping them engaged:
- Keep your list current. Through regular updates and segmentation, determine who is actively engaged with your brand and who has moved away or changed providers.
- Leverage social media and email. Encourage customers to connect with you on social media and send email newsletters with news and offers. This informs your customers about their options, which they might not have known otherwise. The goal is to keep your brand in their minds year-round, not just when they need your services.
- Proactively manage your online reputation. By responding to comments and reviews on social media and sites like Facebook and Google my business, you’re keeping customers engaged after they buy. You’re also increasing the chances of winning back customers you might have lost.
- Tap into seasonal trends. By creating different offers based on seasons and holidays, you can track how your audience responds and when they’re likely to buy. Depending on your budget, you can leverage these offers via the aforementioned digital channels and coordinate them with direct mail campaigns, radio spots, and TV spots to achieve maximum visibility.
- Create a referral marketing plan. Your referral marketing plan can turn customers into brand ambassadors who will help generate leads and business. These programs work with the help of incentives like gift cards to encourage customer participation.
Customer Service and Outreach are Key
The key to successfully tapping into your existing customers is good service and communication. If your technicians leave your customers frustrated, then you’re unlikely to turn them into brand advocates. Similarly, they’re unlikely to want to learn more about your products or offerings. However, if you offer strong customer service and leave your clients happy with your work, then you’re likely to bring them back again and increase their total LTV.
If you have a strong customer database that you want to tap into, contact the team at Mediagistic to learn more about your options. We’re a leading industry expert in marketing for home service providers, which means we can stay on top of the latest trends and create a plan unique to your needs. Contact us today to get started planning a customized, multi-channel home services advertising and marketing campaign designed to make full use of your customer database.
Garvie MacDiarmid is an Account Development Manager at Mediagistic. Connect with him on Linkedin.
Image via Thinkstock
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