Looking After Business and the Real Profit Makers

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Business and profits

If I asked you the most important part of your business, what would you say? Marketing? PR? Perhaps advertising or sales?

Now what if I said they’re all irrelevant? What if I said you don’t need sales to be successful? You’d probably say (fairly sarcastically), “Why not just hand my business over to my competitors while I’m at it?”.

And you’d be right – if I were serious.

Of course PR, marketing, advertising and sales are relevant, and hugely important parts of your business. But they’re not the most important part.

“But they’re the ones that bring the customers and make money, and money equals profits!”you might say. And again, you’d be right. But take a look at that sentence again.

“Customers… make money and money equals profits.”

That’s both sets of customers, new and existing. So why are so many businesses concentrating on the new and forgetting about the existing? Is the mindset, “Well, they’ve stuck with us so far, they must be happy”? If it is, be prepared for a wake-up call.

Just because a customer has stuck with you doesn’t mean they’re satisfied. They may be tied into a contract or they may feel it’s too much effort at the minute to find a new vendor. But satisfied? Not necessarily.

Be Vocal

Have you asked them lately how they’re feeling? Have you asked how you can improve your service (don’t fall into the trap that your service has reached its plateau – nobody’s thatgood)? You do have ways of asking these questions, don’t you? If you’re not sure, ask yourself the following:

  • Do you have a customer feedback form on your website?
  • Do you have a proactive approach at asking your customers what they’re thinking?
  • Do you collect your customer details and use that information to personalize your relationship?
  • Do you have some form of customer service performance in place?

If you can’t answer “Yes” to at least one of these questions, you might want to check and see how many of your customers have dropped off the radar in the last 3-6 months.

As important as your sales team is, or your marketing team, or your PR team or your advertising team – as important as all these elements are to your business’s success, they all cost money.

Your customers, on the other hand? A happy customer is your sales, PR, marketing and advertising teams rolled into one. Your most loyal employee. Your most vocal supporter – and they don’t take wages from you. So look after them.

Be Pro-Active

If you collect contact information, use it. Call your customer up and ask how they’re finding their time with you. Ask how you can improve and what you can do to make their lives easier when shopping with you.

Don’t collect information initially? Fine – have a feedback form on your site and have that (or a customer feedback phone number) printed on your receipt. Encourage interaction and communication.

Or, if you have a Twitter account, for example, have “Don’t forget to tweet about us on Twitter” printed on your receipt and then monitor your mentions. And this works both ways – you can salvage a negative impression immediately or emphasize a positive one.

Start a forum on your website where customers can chat with each other about how you’re doing, and how you can improve. Involve your employees throughout the company on the forum, and talk to your customers like human beings instead of just sales figures. Sure, you can advise on what employee can say what, but at least offer the voice to open up to and converse with.

The key thing is, sales and marketing and the rest of the new business team is exactly that – new business. And you absolutely need that. But you also need existing business to build on and let you have the means to go after the new. Your customers – and by association, your customer service – are the real profit makers.

Isn’t it about time you treated them accordingly?

image: Nemo’s great uncle

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About Danny

Danny Brown is Chief Technologist at ArCompany, helping clients turn social media intelligence into business results. He’s the co-author of Influence Marketing: How to Create, Manage and Measure Brand Influencers in Social Media Marketing, described as "the book that will change the way we do business today." He’s an award-winning marketer whose delivered results for organizations like Microsoft Canada, BlackBerry, FedEx, Ford Canada and LG Electronics, and his blog is recognized as the #1 marketing blog in the world by HubSpot.

57 comments
RobertOlsen
RobertOlsen

If you were to ask me what I think is most important about the success of any business, I'd say having a clientele list. But ultimately, I agree with everything you had to say.

MissSuccess
MissSuccess

@kellyecrane Kellye, thanks for all that you do for the PR community. You're such an amazing resource.

MissSuccess
MissSuccess

@KellyeCrane Kellye, thanks for all that you do for the PR community. You're such an amazing resource.

joemilli
joemilli like.author.displayName 1 Like

you absolutely right.. customer. No customer no business.

joemilli
joemilli

you absolutely right.. customer. No customer no business.

Leon
Leon like.author.displayName 1 Like

G'Day Danny,

Peter Drucker says that " The purpose of business is to create a customer." And a bloke with the same name as me says "The purpose of business is the continuation of the business." You can make a profit merely by selling the building your business is located in. But you'll have trouble finding customers and continuing the business without premises to run it from.

Profit is a consequence, not an objective.

And either way it's a damn sight easier, cheaper and more profitable to get repeat business from the customers you already have than those you've gotta find and convince to do business with you for the first time.

But whatever you do, make sure you have fun. As for me..... I'm off to wash out my heretical mouth with soap!

Regards

Leon

Danny Brown
Danny Brown moderator

@Leon "Profit is a consequence, not an objective."

You always come here with the wisest words, mate - shame more companies don't have someone like you in their arsenal.

Enjoy the soap!

Leon
Leon

G'Day Danny, Peter Drucker says that " The purpose of business is to create a customer." And a bloke with the same name as me says "The purpose of business is the continuation of the business." You can make a profit merely by selling the building your business is located in. But you'll have trouble finding customers and continuing the business without premises to run it from. Profit is a consequence, not an objective. And either way it's a damn sight easier, cheaper and more profitable to get repeat business from the customers you already have than those you've gotta find and convince to do business with you for the first time. But whatever you do, make sure you have fun. As for me..... I'm off to wash out my heretical mouth with soap! Regards Leon

DannyBrown
DannyBrown

@Leon "Profit is a consequence, not an objective." You always come here with the wisest words, mate - shame more companies don't have someone like you in their arsenal. Enjoy the soap!

guitarfreak
guitarfreak like.author.displayName 1 Like

The feedback form / survey is a great tip...just another way to ask them what they want, and give it to them!

Latest blog post: Review of Jamorama

guitarfreak
guitarfreak

The feedback form / survey is a great tip...just another way to ask them what they want, and give it to them!

markaylward
markaylward

Danny It is amazing how we tend to forget or neglect our current customers, but it is human nature because we do this as well with friends and family. Let this serve to remind everyone to call their family members that they "have been meaning to call" and say hello Cheers mark

DannyBrown
DannyBrown

@markaylward Hey there Mark, Great point on taking it to our personal lives, too - we never know what's going to happen, so thanks for the reminder on this.

markaylward
markaylward like.author.displayName 1 Like

Danny

It is amazing how we tend to forget or neglect our current customers, but it is human nature because we do this as well with friends and family. Let this serve to remind everyone to call their family members that they "have been meaning to call" and say hello

Cheers

mark

penneyfox
penneyfox

As always, great reminders and good suggestions to continue this process that we call engagement. Ironically, part of my business provides media planning and placement for clients and yet in over 14 years of being in business, I've never used any ads to promote my own company. 100% of our business comes from referrals and the connections that we make online and offline. That statistic means that we're doing something right but you bring up some good points to start reaching out to our current customers to get their feedback. We'd like to believe that they are pretty happy and that's why they stay with us and send more folks our way. After reading this, I think I'm going to plan a feedback campaign to get their thoughts on what we're doing well and what we can do better. Thanks for this post!

DannyBrown
DannyBrown

@penneyfox It's so true, Penney, and something all the companies looking to use "online influence" to encourage a decision seem to miss - we trust those we know and have earned that trust. Anything else is just a potential - maybe a good one, but still a potential. Let's make sure we keep the solid ground, though. Cheers!

penneyfox
penneyfox like.author.displayName 1 Like

As always, great reminders and good suggestions to continue this process that we call engagement. Ironically, part of my business provides media planning and placement for clients and yet in over 14 years of being in business, I've never used any ads to promote my own company. 100% of our business comes from referrals and the connections that we make online and offline. That statistic means that we're doing something right but you bring up some good points to start reaching out to our current customers to get their feedback.

We'd like to believe that they are pretty happy and that's why they stay with us and send more folks our way. After reading this, I think I'm going to plan a feedback campaign to get their thoughts on what we're doing well and what we can do better. Thanks for this post!

Danny Brown
Danny Brown moderator

@penneyfox It's so true, Penney, and something all the companies looking to use "online influence" to encourage a decision seem to miss - we trust those we know and have earned that trust.

Anything else is just a potential - maybe a good one, but still a potential. Let's make sure we keep the solid ground, though. Cheers!

EricaAllison
EricaAllison

I get most of my new business from existing customers. I fail miserably when I'm chasing the elusive new customer at the expense of my current one. I was literally just standing in the hall talking with another small biz owner (we're in a building of small biz owners) and lamenting about how we're happy with the current client base but always thinking ahead. I said I worry more about how well I'm servicing my current clients and their projects and often forget the ones yet to be had. I think the more attention we pay to our current base, the more clients we'll have (if we want them - careful what you wish for!) in the long run.

DannyBrown
DannyBrown

@EricaAllison I once worked for an organization (5,000+ employees) that always chased the new client, since they felt that's what they had to do. No loyalty program, no real customer service - but plenty of chiefs in the new business department. And now, they're letting people go by the hundreds. Sad.

EricaAllison
EricaAllison like.author.displayName like.author.displayName like.author.displayName 3 Like

I get most of my new business from existing customers. I fail miserably when I'm chasing the elusive new customer at the expense of my current one. I was literally just standing in the hall talking with another small biz owner (we're in a building of small biz owners) and lamenting about how we're happy with the current client base but always thinking ahead. I said I worry more about how well I'm servicing my current clients and their projects and often forget the ones yet to be had. I think the more attention we pay to our current base, the more clients we'll have (if we want them - careful what you wish for!) in the long run.

Danny Brown
Danny Brown moderator

@EricaAllison I once worked for an organization (5,000+ employees) that always chased the new client, since they felt that's what they had to do. No loyalty program, no real customer service - but plenty of chiefs in the new business department.

And now, they're letting people go by the hundreds. Sad.

SocialMediaDDS
SocialMediaDDS

Boy dannybrown do you make excellent points!! I can absolutely relate this to the dental industry. We are always seeking new patients and so often forget to "market" the wonderful patient base that already exists! And, to add to your points, your existing customer/patient base become excellent sources for new patients IF you have paid attention to those existing customers/patients. If you ask them "what can we do to improve our service?" and then you make that change...if you thank them for their business and make them feel valued...THEY are going to be some of your best sources of marketing. So, you are right...take a look at your current customer/patient list and work on engaging with them (or re-engaging if you have lost contact) Love this post!! Well, okay...it's true...I love most of your posts ;-) Claudia

DannyBrown
DannyBrown

@SocialMediaDDS I hate the dentist, but my wife and her friends had nothing but good things to say about the one they went to - and they were right. Just goes to show. ;-) Perfect point about the "What can we do for you?" angle - so many forget it, yet it's such a great business generator as well as loyalty builder. Cheers, Claudia!

SocialMediaDDS
SocialMediaDDS like.author.displayName 1 Like

Boy @dannybrown do you make excellent points!! I can absolutely relate this to the dental industry. We are always seeking new patients and so often forget to "market" the wonderful patient base that already exists! And, to add to your points, your existing customer/patient base become excellent sources for new patients IF you have paid attention to those existing customers/patients. If you ask them "what can we do to improve our service?" and then you make that change...if you thank them for their business and make them feel valued...THEY are going to be some of your best sources of marketing. So, you are right...take a look at your current customer/patient list and work on engaging with them (or re-engaging if you have lost contact)

Love this post!! Well, okay...it's true...I love most of your posts ;-)

Claudia

Danny Brown
Danny Brown moderator

@SocialMediaDDS I hate the dentist, but my wife and her friends had nothing but good things to say about the one they went to - and they were right. Just goes to show. ;-)

Perfect point about the "What can we do for you?" angle - so many forget it, yet it's such a great business generator as well as loyalty builder.

Cheers, Claudia!

HowieSPM
HowieSPM

Everything your business does is meant to bring in sales. Customer service and focus on the customer is what brings them back. Never ever forget that. Plenty of people flip the bird at great products because of the hassle or lack f customer service. My first computer was a Dell in 1995. Their customer service was so bad 16 years later I will never own a Dell.

DannyBrown
DannyBrown

@HowieSPM And it took Dell a big push to improve - but at least they seem to have improved, which is always nice.

EricaAllison
EricaAllison

@HowieSPM Amen to that! Worst customer service experience and best example of how NOT to do it.

Howie Goldfarb
Howie Goldfarb like.author.displayName like.author.displayName 2 Like

Everything your business does is meant to bring in sales. Customer service and focus on the customer is what brings them back. Never ever forget that. Plenty of people flip the bird at great products because of the hassle or lack f customer service. My first computer was a Dell in 1995. Their customer service was so bad 16 years later I will never own a Dell.

stanleyrao
stanleyrao

Many businesses don't want their customers to go from them, they don't want to loose business so they lock the customers into a contract but it is of no use once the contract is expired customer will leave because they are not satisfied with the service which is offered.

DannyBrown
DannyBrown

@stanleyrao The funny thing with contracts is that they don't seem to be as locked-in as they once were (mobile phone companies, especially). Probably because, like you say, customers got wise and wouldn't sign in to be treated like crap. ;-)

stanleyrao
stanleyrao like.author.displayName 1 Like

Many businesses don't want their customers to go from them, they don't want to loose business so they lock the customers into a contract but it is of no use once the contract is expired customer will leave because they are not satisfied with the service which is offered.

Raj-PB
Raj-PB

It is the ultimate truth that existing customers are always unhappy. They may not show it outside because they selected the vendor, but some probing will bring the issues on hand. Its important to work on those issues that are bothering them than thinking that the 'Service manager' will take care of issues. They wont.

DannyBrown
DannyBrown

@Raj-PB Great points - and we believe everything is hunky-dory because no-one is saying anything. Yet then we act surprised when sales are down as are customers... ;-)

Raj-PB
Raj-PB like.author.displayName 1 Like

It is the ultimate truth that existing customers are always unhappy. They may not show it outside because they selected the vendor, but some probing will bring the issues on hand. Its important to work on those issues that are bothering them than thinking that the 'Service manager' will take care of issues. They wont.

Omnific_Design
Omnific_Design

Hi, Danny. Everything that we do for our business is relevant even social media, even if it doesn't really bring home the bacon, because as you say it is marketing that brings in new clients. But, over the years, I have noticed that it is indeed the personal connection that we have with our clients that keep us going. It is how we take care of them that matters and makes them come back again and again to avail of our services.

DannyBrown
DannyBrown

@Omnific_Design Hey there mate, great to see you here - hope you're doing great over there on Oz. :) The funny thing is, it doesn't even take that much to take care of your people - it's the clean up afterward of not taking care of them that takes much more time, effort, and money. Cheers!

Wes Towers
Wes Towers like.author.displayName 1 Like

Hi, Danny.

Everything that we do for our business is relevant even social media, even if it doesn't really bring home the bacon, because as you say it is marketing that brings in new clients. But, over the years, I have noticed that it is indeed the personal connection that we have with our clients that keep us going. It is how we take care of them that matters and makes them come back again and again to avail of our services.

Danny Brown
Danny Brown moderator

@Wes Towers Hey there mate, great to see you here - hope you're doing great over there on Oz. :)

The funny thing is, it doesn't even take that much to take care of your people - it's the clean up afterward of not taking care of them that takes much more time, effort, and money.

Cheers!

Brian Driggs
Brian Driggs like.author.displayName like.author.displayName 2 Like

Coming from more than a decade of online community participation, development, and leadership - mainly through forums - I often find all the social media talk amusing. I really appreciate your suggesting a discussion forum to your audience. The fact that the ORIGINAL form of social media - tried and true - so seldom gets a mention in social media circles is proof enough for me that the bulk of the social media professionals flat out DO NOT GET THE CONCEPT.

I know why discussion forums have not had the corporate support of, say, Facebook and Twitter, in previous years - marketing was all about controlling the message - there was no interest in engagement whatsoever. Why would a business join a community and actually participate with existing and potential customers? How would they control the message? What if the TRUTH got out? (GASP!)

Today, the discussion forum still stands ready to be the most effective means to a targeted community of the most passionate customers who generate content and ideas, provide support and feedback, and spread that so "elusive" word-of-mouth everyone's talking about. BONUS: Forums are built on your OWN domain, so no risk of Facebook or Twitter or Flavor-of-the-Month going under and taking your investment with it.

And yet, we still see precious few corporate discussion forums. Which just goes to show, most people STILL don't get (or aren't even remotely interested in) actually getting to know their customers.

Danny Brown
Danny Brown moderator like.author.displayName 1 Like

@Brian Driggs You know who I always think of when I think of a great forum from a corporate angle? The Best Buy Blue Shirt Nation.

Conceived by two ad guys at Best Buy to understand the needs of the employees when it came to best serving their customers, it's now an amazing resource for much more.

Now - imagine if they could just take something like that public, and really work together with customers too..? ;-)

Brian Driggs
Brian Driggs like.author.displayName 1 Like

@Danny Brown Nice. Co-worker at the day-job used to be a "Smurf." We've discussed the Best Buy angle a bunch of times regarding our own KM initiatives behind the firewall.

Takeaways:

+ Ask forgiveness instead of permission.

+ Start small, drive results, prove the concept.

+ Management is better at backing winners than picking them.

Social media (behind the firewall) is a great way to empower the people to drive to take initiative and drive change/progress beyond what management can do.

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    [...] Danny Brown: Looking After Businss & the Real Profit Makers (11.02.11) Today, the discussion forum still stands ready to be the most effective means to a targeted community of the most passionate customers who generate content and ideas, provide support and feedback, and spread that so “elusive” word-of-mouth everyone’s talking about. BONUS: Forums are built on your OWN domain, so no risk of Facebook or Twitter or Flavor-of-the-Month going under and taking your investment with it. [...]

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