Posts
That's a pretty bold statement but let's take a look at an example.
Let's assume that there are 10 businesses competing for 100 customers. You would think that each business would get 10 customers and everyone would be happy. But it doesn't quite work that way. In fact, one business will probably get almost all of the customers!
I'm sure you've seen this before, especially since I just used it. But what does it mean?
Using the numbers above, all 10 businesses make a first contact but only 2 customers sign up the first time. Only 5 businesses make a second contact and 3 customers sign up. Two make a third contact and 5 customers sign up. But only one person makes 4 or more contacts and gets 90 customers. But this one person will also likely get some of the other 10 customers, too. Why is that?
This person has a 1 in 10 chance of getting each of the first 2 customers or a 1 in 5 chance of getting at least one of the 2 (1/10+1/10=2/10 or 1/5). And they also have a 1 in 5 chance of getting each of the next 3 customers or a 3 in 5 chance of getting at least one of those 3 (1/5+1/5+1/5=3/5), which is a 4 in 5 (80%) chance of getting at least one of the 1st five (1/5+3/5=4/5).
But wait! It gets better...only two people are going after the next 5 customers...so there's a 50% chance of getting each one or a 5 in 2 (1/2+1/2+1/2+1/2+1/2=5/2) chance of getting at least one of the five (that's a 250% chance which means they should get 2 or 3 out of the 5). Let's look at the probabilities so far: they have a 4 in 5 chance of getting at least one of the first 5 and a 5 in 2 chance of getting one of the next 5. If we give them the same denominator we get 8 in 10 and 25 in 10 for a total of 33 in 10 (8/10+25/10=33/10), so our hero (you) should end up with 3 out of the 1st 10 customers and 90 out of the next 90, for a total of 93 out of 100 customers or a 93% market share! And since there are only 7 customers left to be divided up among the remaining 9 competitors, that means that at least 2 businesses don't get any customers at all!
If a new potential customer enters the scene and asks for referrals, the person with the most customers will likely get the most referrals. In fact, the person who keeps following up will have at least 9 times as many customers as the other 9 people combined! So, whose name will keep popping up when someone asks for a referral? The person who followed up 4 or more times.
But there are right and wrong ways to follow up, and the best way to find the right way to follow up is with the Master Relationship Marketing course offered by SendOutCards. The MRM course is a series of video lectures with lots of examples of how businesses are using relationship marketing to get new customers as well as keep their existing ones.
And speaking of keeping their existing customers; it's just as important, if not more so, to keep your existing customers since it costs much more to get new customers as it costs to keep your existing ones, which is what we'll talk about tomorrow.
Interesting days
Tomorrow - Knife Day, Vesuvius Day, International Strange Music Day, Pluto Demoted Day, Internaut Day and Peach Pie Day
Next Thursday - Slinky Day, Toasted Marshmallow Day, Frankenstein Day, International Whale Shark Day, Holistic Pet Day and Grief Awareness Day
September 23 - Celebrate Bisexuality Day, Checkers Day, Restless Legs Awareness Day and Supernatural Day
No comments:
Post a Comment