Most of the money that is spent on marketing is trying to get new customers. Companies spend lots of money on social media, internet marketing, direct mail pieces, television and radio advertising as well as print advertising. But how much money is actually spent on marketing specifically to your existing customers?  Now that they have already purchased your product or service and they are satisfied and trust that you can deliver, you already have a captive audience, and attracting repeat revenue from a captive audience is much easier than standing out from the crowd in all the noise of marketing to new customers.   

It costs about 100 times more in marketing effort to get a new customer then to keep an existing customer, depending on the market. So why isn’t there more of a focus on marketing to your existing customers?

What’s the best way to sell more to your existing customers?

What you really want to do is to make that customer feel special and give them a reason why they should come back and buy more from you. There are some minor efforts like when you go to the coffee shop or deli where you get a special card and after the 10th purchase you get the next one free. 

This loyalty card is only so good because the customer often doesn’t remember that they have the card until they’re actually are back in your store again.  You need something that is in their face to remind them that they are special and that they should come buy from you again.

How do you do this?  Most companies are blasting emails over and over and over again, clogging up the inbox of their most trusted customers. I looked at my email box the other day I have a special folder which has anything’s that contains the word “unsubscribe.” 

After just 3 days, I have 348 emails in this folder. Some of these are legitimate, I’m sure I’ve given out my email address, for example the local restaurant when I paid by credit card and it asked me if I wanted my receipt emailed. Huge mistake. Because now that they got my email, it seems like every day I get a list of their specials. And these aren’t specials because I’m a special person like a VIP member. These are specials available to every single person that walks in the door. This is not how to make your loyal customers feel special.  But it certainly will get them annoyed, frustrated and you might even lose a customer.

You don’t want to do a loyalty card. We don’t want to spam them with unlimited emails and give them specials that are available to the general public. So what do you do?

Making your customers feel Important and Special

To make your best customers feel special and to reward their loyalty you need to treat them as a VIP.  Give them specials that only they receive.  Implement an SMS Text Marketing Campaign.  With a Text Marketing Campaign, users sign up with their phone using Double Opt In to eliminate spamming or just randomly being placed on the list.  Then they receive special offers directly to their phone once a week and these offers are only for these VIP members.  You make them feel special, they get one message per week, and get your best customers coming back in more often to spend more money on your products and services.

I remember one day I was sitting on my couch at 5:15 on a Friday texting some of my friends about where we were going to go that night for happy hour. Should we go to the same old places. Suddenly, I received a text message from the restaurant across the street telling me about some appetizer special only available if I show my text message because I’m a VIP member. Guess where I went with my friends that night. By simply making me feel special and that I was getting something that was not available to the general public, my decision was made for me.

Restaurants, for example, may spend up to $1,000 a month mailing coupons to people who may never come in to the restaurant or if they do come in often leave that coupon at home. They may also spend upwards of $1,000 a month on social media, Facebook Twitter Instagram and their website, which is all designed to bring in new customers. For a very small fraction of that cost they could be doing text marketing directly to their loyal customers making them feel special and driving them in the door.

ROI – Return on Investment, Can you afford this?

Assume you have 1,000 customers that come in to your store, restaurant, shop, etc. each month.  If you can get only 20% to sign up for your VIP texting club and you send 5 messages per month and only 5% show up, you will have added significant revenue to your top line.  If your average ticket price per person is $50 per person, for a restaurant, that 5% brings in up to $5,000 of additional revenue, assuming each person brings one friend.  That’s a lot of additional revenue, especially when you consider that these SMS Texting plans start at $39 per month.  It simplifies the decision making process for your customers.

But what if I don’t have 1,000 customers or my ticket price is not $50.  Even if your average sale is $10 like donut shop, if only 5 people per week respond and show up that is still $200 with more revenue and still more than the cost.  It’s all relative.

Will my Customers get annoyed with me?

Getting spammed with hundreds of emails that we never signed up for may make us a little skittish about sending out text messages to our best customers.  Emails are being abused.  Text messaging requires a double opt in by the user.  The user must initiate their registration from their phone and they get a second text confirming their acceptance.  As a merchant, you cannot upload a batch of cell phone numbers and text them.  There is a legal ramification as well it will really upset your customers.  If your customers love your products and services and they willingly sign themselves up, they will appreciate the occasional text message with awesome deals designed especially for them. 

Your Customers want to buy more from you. Accommodate them. Make it easy by reminding them they are special and how they can feel good about giving your more of their money for your products and services.

Make your customers feel special create a VIP program with text messaging and drive your revenue when you need it. Get started today it’s quick it’s easy as painless. To find out if Text Marketing will work for your business call (973) 984-3000 or email sales@kolaco.com.