Turn your customers into your salesforce

I am back with some more mathematics related to the customer.

If you have been reading my blogs on the subject, you must be thinking that if I kept retaining all my customers, I will continue to have 100 customers. But what about the additional 10 customers the company needs to achieve its objective of 10 percent increase in sales? I posed the question to Customer Guru. He knowingly smiled and told me to have patience as the next Customer Math formula will show me how.

Customer Guru suggested that I consider the implications of the Customer Math formula 1=3, which stated that every satisfied customer will speak well about me and my products to at least three of her friends, family members, or co-workers. Once my customers are completely satisfied with what I offer them, they will advertise my products and services by talking positively about them. CustomerGuru told me that with such customers by my side, I do not need salespeople or advertising agencies to promote my products and services.

Most people planning a major purchase spend little or no time going through printed matter published by the company. Instead, before deciding which brand to buy, they prefer to consult friends and relatives, whose opinion they value and trust.

Let’s bring in the example of the hypothetical company with 100 customers with which we have been working. Let us suppose, we are keeping these 100 customers happy and satisfied. Then according to Customer Math formula 1=3, they will promote us to 300 (3×100) prospective customers. Now, can we assume that at least 10 percent of these customers to whom our satisfied customers have recommended us will buy from us? Probably yes. We have just increased our sales by 30 percent (30 customers) without spending a penny on advertising and marketing. Our satisfied customers have become our sales force and their word-of-mouth promotion has effectively replaced our advertising and marketing campaigns. We have automatically increased our sales by just keeping our customers satisfied.

People don’t realize that the prerequisite for getting new customers is keeping your existing customers satisfied. Word-of-mouth publicity by your existing is not only free but it also more potent than paid-for advertising.

I hope all of you out there will focus on the customer in hand and not run after the new customers.

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You are right,
and usually customers “who speak up” to others are the loyal once. It would be hard for them to switch to other products or services.


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