Why You Must Build A Customer List To Prosper

If you run (or plan to run) an online
business, it’s especially important
that you maintain and add to a
customer/prospect list. Unlike
a store-front business, which can draw
on pedestrian traffic, you’re only
location is cyberspace.

You must constantly let potential
customers know you exist. And to remind
current customers that you’re still
in business and have more products
and services to help them.

The are couple of powerful reasons
for keeping an updated list of your
customers’ names and email addresses.

Obviously the first is that prospects
can be turned into customers.

But here’s another important reason:
It costs five to ten times as much to
acquire a new customer than selling
more products to your existing customers.

Think about all advertising costs
involved in trying to attract new buyers. It’s much easier to sell to people whom already know you.

If you sell a quality product and deliver great customer service, you build customer loyalty and help prevent customers switching to your competitors.

Also take advantage of “cross selling.”
If customer X bought Product A, make sure they know about Product B, C, etc.

If your customer doesn’t purchase your
other products, send an email and politely inquire.

When you find out their specific objection to buying, you can then address the problem.

Perhaps you can offer the customer a
volume discount, two for one deal, or
add an inexpensive gift if they order.

Be creative in ways to overcome
customer resistance.

And check through your list often.

When was the last time you were in
contact with each of these customers?

You should be keeping in touch with
them at least monthly. Even if it’s
just an email asking how they are
enjoying your product or service.

Ask them if they were pleased with the
customer service they received from you
or how can you serve them better.

One of the most effective ways to keep in contact with your customers is to send them a newsletter. With email, it’s easy to create your own electronic newsletter or ezine. (For info on how to start an ezine, visit http://www.epdigest.com)

But make sure your ezine is more than
just a sales pitch. People will tire of
that quickly.

Instead, offer tips on how to best use your products, include new product information, offer discounts on upgrades, or create a frequently asked questions (FAQ) column.

Your goal is not to be just a company
that sells products, your goal is to be
the solution provider to your customers’ problems.

If you’re stumped about what content to
include in your newsletter, send out an
email to your customers asking what they’d like to read.

TIP: You’ll get a much better response if you offer an incentive for them to reply. Offer a free e-book or discount on your other products.

If you’re just starting your business,
you don’t need to purchase an expensive
database to store your customer list. Many email programs have versatile address book features where you can store and update your list.

Microsoft Works includes both a database and spreadsheet program that are easy to use and won’t blow your budget.