The purpose of this article is to present 10 good tips to improve the effectiveness of your actions of prospecting and loyalty, and in addition to the presentation of four tools that will help you improve the performance of your business.
Why Prospecting or loyalty?
Before beginning, we must already remember why it is interesting to explore and loyalty … The goal is simple: each year companies almost always lose a certain percentage of their customers, and so you either have to eat more to existing customers or find new ones.
Among these clients, a number could go bankrupt, working with another supplier or just not wanting to work with you. A study by the Harvard Business Review estimates that companies lose on average 50% of their customers every 5 years (about 10% each year!).
This figure, although varying according to sectors, is totally believable: In fact if you have fun to make a quick subtraction between your customers the start of the year and those remaining at year end, you will usually see a disappearance between 5% and 15%.
Put simply, it’s almost as if the company had a tank full of water (= clients), with a valve that feeds the fresh water tank (= new customers) and a siphon which lets out regularly a trickle (existing customers leaving the company).
Once this well in mind, it only remains to ensure that the water level remains at subsistence level, by acting either on the water supply valve (= recruit more leads) or effectively blocking the siphon (= improve its early retention or to consume more) …
Prospecting may seem the simplest solution: replacing old customers with new, but as in the case of a tank, add water usually costs more than making a small repair.
According to the White Paper Customer Relationship Sage & IDC ( www.sagecrm.fr ) why the client leaves his supplier would in almost 68% a lack of contacts (no stimulus, no newsletter …) and not as one might expect an issue price or product.
Again, it is very logical because everyone lived the scenario of a loyal customer who receives a call from a competitor just when it needs to buy, and control passes under you the nose!
Finally in the justification for the introduction of a loyalty program we should remember that generally retain costs 2 times cheaper than prospecting.
In addition to these two phenomena, there is a third factor to be taken into account: the efficiency of tools used. To return to our example tank, the valve that feeds the tank may be set incorrectly and splash a little water out of the reservoir.
And so to improve the productivity of our system, we must establish methods and good organization aimed at improving the profitability of the shares of prospecting and retention.
Indeed some studies have shown that between 30% and 60% of the time a trade was not devoted to the sale itself but on administrative tasks, research information, decision-appointment You, training, travel …
We must therefore firstly maximize the time devoted to the sale of commercial, make sure it will hit the right target … with the best arguments!
How effectively prospect and loyalty?
First, it should be noted that there is no magic formula to prospect.
Prospecting is a story of good sense : and we must ask the right questions (and listen to client!), prepare appointment / call (arguments, identifying customer needs …) … All this is based on a good sales technique (response to objections, recovery, open questions, chaining YES in questioning …), and only then comes the seller of talent, that little extra that characterizes As of Sale …
As we have stated previously, retention should aim to motivate customers to stay through personalized and regular communication … We must therefore schedule regular, targeted and effective communications with customers, enabling you to operate your base customers.
Warning: as we shall see below, loyalty does not mean giving gifts to customers without thinking … loyalty must see optics bring money to the company and to improve its profitability. Indeed, a Loyalty program that does not generate (especially to prove!) an additional turnover will sooner or later doomed to be suspended because it will not be regarded as a profit center but as a cost center …
Below some of the challenges that we will discuss in this article:
– Commercially: control and monitor its business portfolio in progress, never miss business for lack of stimulus or arguments do waste your time on low-potential prospects, reduce sales cycle …
– At the marketing level: exploit its customer base and prospects and the segment to offer the most relevant arguments, analyzing the return of his campaigns (for no longer based on intuition but on the true ROI of an operation), differentiate on criteria other than price, to consume more and / or more often, set up to develop a chain of recurring revenue …
To address these problems, we will see that it is often essential to implement a CRM tool (eg Sage Crm, ACT! …). Indeed CRM software can track current business, gather all the information into a single customer database, effectively organize the activities of its business …