Better Customer Communications Creates Better Revenue
MHC Marketing April 9th, 2018
As a businessperson, you’re always looking for more customers. The more customers, the better, right? It’s deeply ingrained thanks to years of school, training, and hearing your coworkers talk about it constantly. It’s not a bad thing, since having customers means your company is bringing in new revenue. Sadly, you might not fully realize how much your business could be saving – and making – just by employing better customer communications.
According to industry research firm Gartner, it costs six to seven times more to gain a new customer than it does to maintain a current one. What’s more, around 80 percent of your company’s future revenue comes from 20 percent of your existing customers. NewVoiceMedia found that more than $41 billion of revenue is lost each year due to poor customer experiences.
Ask yourself why, then, do so many organizations exhaust countless resources chasing those who might – or might not – become customers, when there is value right in front of them? All it takes is better customer communications.
THE IMPACT OF BETTER CUSTOMER COMMUNICATIONS
Effectively nurturing the marketing relationship with willing, eager, and committed customers costs less, generates a higher return on investment (ROI), bolsters future business – and can be accomplished with relative ease. One of the most powerful means to market to existing customers is through the communications you already send. This is an important avenue for two reasons:
- There is an expectation that comes with the invoices, statements, letters, and other materials you send out; these documents contain pertinent information that is valuable to the recipient.
- For many organizations, this is the primary means of communication between them and their customers – for some, it is the only means of communication.
Your customers are already familiar with this means of communication, and they value the information you provide. How, then, do you leverage these benefits to get the most out of these communications from a marketing perspective?
It’s easier than you might think. Go beyond the traditional means of inundating your customers with generic inserts in your communications (trust us, those get tossed in the trash quickly), and instead focus on messaging they actually care about. Marketing to specific segments isn’t new or challenging, but it is quite effective. So, again, ask yourself why there is a such disconnect when it comes to the approach taken with the documents we produce?
Let’s look at this credit card statement for a moment. This is the type of customer communications material most often sent out. Sometimes, this is the only way your company connects with its customers. Because of this, it’s in your company’s best interest to provide a better customer experience.
In the statement above, the company uses its customer communications management, or CCM, software to pull in information about the customer. The software recognizes this customer spends a lot of money on women’s fashion, so it provides a voucher the customer can use at a women’s fashion store. If the customer believes they have a genuine, 1-to-1 connection with your company, they are more likely to recommend you, that’s why there’s a box on the statement that clearly gives the customer that option.
Your company just improved its customer’s experience and possibly will receive new business thanks to the recommendation. It didn’t require painstaking labor, just the right software.
BRIDGING THE CUSTOMER COMMUNICATIONS GAP
Organizations have access to all the components necessary to effectively deploy highly-targeted marketing with their digital customer communications. What they often lack is a productive environment that makes it easy to manage all the content, tracking, analysis, and distribution activities that are used to effectively run and evaluate these efforts. The customer data may live in one database, while sales information resides elsewhere – and document production itself is completely segregated into the operations side of the business, along with other cost center activities.
Organizations serious about maximizing relationships with current customers to foster continued growth can’t afford such a fragmented system. If all the information is scattered throughout your business, it makes it almost impossible to have better customer communications. To solve this major problem, organizations turn to smart applications that can easily integrate highly specified messages directly into the outbound communications they create. This software does so dynamically, intelligently, and in an automated fashion – all while providing a centralized environment from which to manage all the involved processes.
BRING IT ALL TOGETHER WITH MHC
Your company has already spent money to develop the customer relationships you already have, and a substantial portion of your future revenue is tied to these relationships. By adding focused, targeted marketing within the communications you already produce, you have an opportunity to foster more productive conversations that, in turn, lead to higher returns and more satisfied customers.
These satisfied customers already do business with you, which means the hardest part is over. All you need to do now is use the information at your disposal to put the products and offerings your customers want in front of them. Each document you send to your customer is a conversation. Are you both getting the most out of it?
At MHC, our state-of-the-art CCM software allows your company to keep all of your customers’ information together, so you’ll have a better understanding of what they want and what they need. Happy customers lead to a higher lifetime value and increased revenue for your company. You might even be surprised at just how affordable and easy to use our software can be. To find out more about MHC, you can just visit our contact page. We look forward to helping your company find the path to better customer communications.