A Customer is for Life: Not Just for Christmas

2 November, 2008 - General Business - 8 Comments


Photo by Arslan

John has just seen your advert in the local chamber of commerce business magazine. He’s joined the Chamber of Commerce and received the magazine because he’s just setup his new gardening business. He’s paid the $200 fee to be a chamber member. He’s serious about his business.

He calls you because he wants a Web site. He’s willing to invest a good amount of money to get a marketing tool that brings him new customers.

Your diary is free this week so you arrange to meet John the same day he called so you can discuss his needs. You develop your needs analysis after a 90 minute meeting, present a proposal to John and before you can click your fingers he has signed the contract and bank transferred the 50% project retainer fee.

The Web site takes you three weeks to complete and John is really happy. You’ve kept him up to date throughout the project and you’ve attended to every change he’s asked for. John pays his final 50% and you sit back, relax and congratulate yourself on a job well done.

A Customer Is For Life

Fast forward 12 months and you call John to see how his Web site has performed for him. He tells you it has performed great, and even better since the guys at the Web development company down the road did a number of updates six months ago.

“But I thought I was your Web developer, John? Why did you use those guys to do your updates?”

John explains that when you went on your two week holiday six months ago, he needed some urgent updates taking care of. He asked a few friends and eventually got a recommendation for the XYZ Web Development company. He intended to continue using your services once you were back from your holiday. But as it turned out, XYZ did a great job, and more importantly, they kept in touch on a regular basis after the work had been completed.

XYZ sent him a follow up letter to thank John for his business, even though it was just some small (but urgent) updates. Then they sent him their quarterly newsletter. (It just so happened this was due to be sent a few days after they completed John’s work. Or so they told him. Maybe it wasn’t, and they just sent him their last newsletter?). Then they sent John a letter and card to wish him a happy birthday. (This was information they had obtained during the friendly chit-chat during John’s project).

XYZ kept in touch with John. They emailed him. Sent him letters. Sent him birthday cards. And even chocolates. All while he heard nothing from you.

Customer Management Database

I’ve spent the last few days developing a database to manage my clients, suppliers, contractors, business friends and prospects. For those people I know the date of birth for (found via their blogs, forum profiles, emails sent to me or general chit-chat with them) I’ve recorded the information in the database. I’ve done the same for their wedding anniversaries.

Already, I can see that the first person in my database is a customer. He’ll be getting a “Thank You!” letter in the post in the coming days to thank him for the business he sent me last week. Next month, he’ll be getting a letter and card wishing him a happy birthday.

The next person in my database is a friend of my business. He’s not a customer. Just somebody who has helped me get to where I am today. I can see his birthday is this month, and his wedding anniversary is at the start of next year. He’ll be getting two letters from me within four months. Maybe three if I throw in a newsletter between now and his anniversary. Three things that continue to remind him I’m here, I care and I’m available for work.

The next person is also a friend of the business. His anniversary is at the start of next year too.

The next person is also a friend. Actually, she’s the wife of the previous person in the database.

The list goes on. People associated with my business, whether it be a customer, a prospect, a friend, a contractor or a supplier, will all receive regular communication from me. On average once every three months, just to remind them I’m still here, I still care about them and their business, and I’m still available for work.

A customer is for life. Not just for Christmas.

P.S. Thanks go to Brendon Sinclair and his Web Design Business Kit for inspiring this post and helping me in my business.

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Posted on 2 November, 2008 by Jamie Harrop
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8 Comments»

Comment by Andrew Mason Subscribed to comments via email
2008-11-02 14:49:11

Great post Jamie.

There is a great book that covers exactly what you are talking about called “How to swim with the sharks”, by Harvey McKay.

The Raving Fans book from the One Minute Manager is also great.

Thanks..

Andrew Masons last blog post..Positive Thinking - Morcambe and Wise Style

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Comment by Jamie Harrop
2008-11-02 14:55:23

Hey Andrew,

I think I’ve heard of that first book but haven’t looked in to it. I’m heading over to Amazon now. Thanks for the recommendations! :)

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Comment by Jeremy Day Subscribed to comments via email
2008-11-03 04:46:05

Hi Jamie,

Great post. It is so true. You really need to have or invent a customer management system because as you saw, if you don’t take care of them, someone else will. Staying in touch is super important. Its the same concept as in advertising. The more times people see an advertisement the more likely they are to buy. The more times a person hears from you the more likely they are to continue buying.

Cheers,
Jeremy

Jeremy Days last blog post..Saturday Rap #2

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Comment by Jamie Harrop
2008-11-03 12:33:48

Hey Jeremy,

The advertising analogy is a good one.

You’re quite correct. The more people hear from you and the more you tell them you’re ready to work, the more work they’ll send your way.

Thanks for the comment, Jeremy!

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Comment by Nick Subscribed to comments via email
2008-11-03 14:06:58

I’ve actually just started doing this, not sure why I took so long. I’m currently sending letters to my design clients, thanking them for their business, also I explain my referral program and include a 2GB USB drive (with my logo on it) with their website files on it. I’ve been trying to think of a more cost effective gift for my hosting clients, as the USB key is a bit expensive.

I like the birthday idea, sadly I don’t capture their birth dates in my billing panel.

Nicks last blog post..Soccer Is a Vicious Sport

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Comment by Jamie Harrop
2008-11-03 14:12:39

Hey Nick,

The USB idea is one I’m looking in to. Can I ask who you used to brand the keys with your logo?

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Comment by Nick Subscribed to comments via email
2008-11-03 14:38:55

Yeah, I ordered them from Hong Kong artscow.com and used the coupon code D50OFF for 50% off, not sure if the coupon will still work but there might be other codes out there. The drives cost about $12 CAD each including shipping. They look nice and the quality is pretty good.

Nicks last blog post..Soccer Is a Vicious Sport

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Pingback by 5 Ways to Maintain Your Business Passion - Jamie Harrop - Young Entrepreneur Subscribed to comments via email
2008-11-14 12:57:47

[...] A customer really is for life. [...]

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