Every single time you talk to a customer, every single time they see a company truck driving down the road, every time they get an email from your company, every single interaction a company has with a customer through any medium is considered a touch.
It’s the concept that every single interaction you have with a customer is a touch, and every single one of those touches has monetary value that helps your future business.
If you talk to any major marketing company, or anyone who understands the psychology of sales, you’ll learn it’s an established fact that you have to put a customer in front of a prospect eight or ten times before they’ll buy from you. Similarly, you have to ask a customer six or seven times for referrals before they’ll actually refer you to someone else.
It’s really difficult to continuously engage your customer when you’re a small business owner who’s stressed out and always busy. Many companies make the poor, subconscious decision to set their business up to be really “transactional”, meaning they make the deal and they’re done. That’s it. Then they move on to the next deal. But that’s wrong. They need to put value on engaging with customers, and understand how each touch can help future business.
The lifetime value of a relationship with a customer is much more important than that initial sale. If you finish a job, and then just hope they call you next year, you’re missing out on a tremendous amount of value in that relationship.
That relationship can be managed and nurtured through various online mediums. We use Send Jim. Want to see how it works? Click the link here to start a free trial.
Always thank someone for their business, check in, or just say ‘Hi’ because every time you create a touch with a customer you increase the chances of gaining referrals and gaining returning customers.
For example, for every 100 times you ask a customer to refer you, let’s say they give you one referral and their value to you is $1,000. That means your value per touch is $10. Just asking them is worth $10 to you in future earnings. Therefore VPT = R (referral) / T (touches)
One important thing to remember is that you have to ask all 100 times because you don’t know who will actually refer you.
If you always follow-up with customers and continuously ask for referrals, you’re increasing your future business prospects.
You’re going to experience a dramatic increase in repeat business and referrals. Don’t just be based on the now, focus on your future earnings.
Take care and may God bless the work of your hands.