Contact Relationship Management
For all companies, contact relationship management is key to effectively managing customer relationships and hence turnover. But it is often ignored.
With changes in technology now all organisations can deploy cost and time effective systems, which allow all electronic contact to be measured and monitored. This allows smaller businesses to handle multiple one to one relationships at the same time as delivering the work, which has been won.
Contact Relationship Management Reduces the Costs of Getting Business
The cost of acquiring a new customer can be up to 30 times more expensive than retaining an existing client. It also needs 9 points of contact before a sale is made.
For most companies, 80% of their business comes from existing customers and 20% from new customers. 80% of those new customers are word of mouth referrals from existing contacts.
So in reality completely new customers account for c2% of their current business. Yet new customer acquisition dominates most traditional marketing budgets!
Customer Relationships: Inverting the Traditional Funnel
Modern marketing uses technology to aid individuals and companies to create relationships and respond to the needs of its customers. To be effective, marketing requires a measurable response or action. Without a response it is purely a communication.
The traditional sales funnel has many suspects at the top, with fewer prospects and fewer still actual contacts and discussions. The new inverted funnel reaches the ones you know and enable them to help you convert more business by being authentic, keeping in touch and effectively managing data. This process turns clients into champions.
The Power of Numbers Underpins Contact Relationship Management
One is the basic number. It is where most companies start, but then forget. Remember your first client; and how you like to be treated as an individual. For a contact relationship management system, it is essential that all information is accessible in one place. Whether that is details about the client/prospect; or the reports of their interactions; or the tools that power those interactions.
Two are the places that support can be found. Technical support is available by freephone numbers 9am to 4am Monday to Friday and 3pm to 1am weekends and included in the monthly costs! Strategic and marketing advice depends on the nature and depth of the support needed. Simple questions are usually free by phone or email; with fees agreed for retained or larger pieces of work with Aimed Business.
Three is defining the marketing objective, using the right tool and measuring the physical response.
And four is the process of finding one prospect, converting them to a client; keeping them as a repeat client and harnessing their word of mouth as your champion for the next client.