To secure your business’s future and to increase profits, you need to invest in your customers. You need to ponder over some important facts: is customer relationship management system of my organization up to the mark; if I use my organization’s CRM system, will I be able to retrieve information on my customers; are my marketing campaigns effective and productive; does my organization’s database have an emailing list through which I can approach my target consumers? Funding cuts: this is what every organization faces these days. Software and database up gradation: it is exactly what is required now. Instead of letting your revenue sources dry out, you need to invest on your customers. Customers buy your products, generating revenues for you. Selling more product means increased revenues and profits.
1. Communicate and Go all the way!
Coming together counts as it is a basic human act. We are not individualistic; we were brought up in groups. Communication is the key to successful relationships with the consumers. Instead of talking to just one individual, organizations need to send a message to the community. Going all the way is the strategy; from one individual to the other, from one potential customer to the other. Communication can approach a community of customers. The customers must be approached at a campaign level.
2. Updating Databases And Information Systems
Keep a track of your customers. Make them come back. Information related to the consumers must be saved and regularly updated. Databases must contain all important information on the target customers. New products, newsletters, shopping discounts and sales campaigns must be emailed to all the potential customers.
3. Advertisement Investment
Expenses need to be made and money needs to be spent. With costs being higher and no funds, this becomes a worrisome situation, but this should not let you cut down any resources for advertisements. You need to encourage your customers to come back repeatedly and for this, you need to appeal them with attractive advertisements. Target your customers in advertisements, showing that you value your customers.
4. Turnover In Inventory
Attract more customers, make more sales and keep your products moving. As an owner of the business, you should aim to create a turnover in your inventory. Inventory in a constant moving state means initial capital can be regained with increased profits. You will eventually depend lesser on credit and with additional revenues and profits, you will have a margin to make additional investments on advertisement and marketing campaigns.
5. Value Your ‘Stakeholders’!
Profits, annual spend and tenure; all goes for the customers. Keeping current customers is much more important than targeting new ones. Strategy is to find and target the best customers having an incremental capacity for your business. They can either buy your product and increase revenues or they can bring in more customers. Follow Pareto’s 80/20 rule. Spend 80% of your annual spend on customers that buy 20% of your product. Increase the percentage of the customers buying from you and increase the resources of your incoming revenues.