5 of 5 people found the following review helpful
Don't step over dollars to chase pennies,
This review is from: Flip the Funnel: How to Use Existing Customers to Gain New Ones (Hardcover)
Synopsis: It's more profitable to grow your business by convincing current clients to buy more often and refer others, rather than spending most of your time and money chasing new clients. The subtitle says it all: How to use existing customers to gain new ones.
By creating a more memorable customer experience and acknowledging your clients, you set the stage for increased customer loyalty -- and profits.
Like Delivering Happiness by Tony Hsieh, this book has a timely message. Anything you do to build loyalty and word-of-mouth with your existing clients in a recession will pay you back in spades.
1. Flip the funnel
Traditional marketing dumps many prospects in at the wide top, to get out a small number of customers at the bottom, where the process ends. This is time-consuming and costly.
By flipping the funnel, you can start with the first purchase and turn a small number of existing customers into many new ones. This can be faster and less expensive, because you are building from a base of people who already trust you -- your customers.
2. Deliver a memorable customer experience
The customer experience is the sum of all contacts, transactions, and encounters between customers and your company, your brand, your people, and your products and services.
Companies like Apple, USAA Insurance, Virgin America, Zappos, and others put serving the customer ahead of profits in the NOW, when customer service happens. This has made them highly successful -- and profitable -- over the months, quarters, and years that follow.
3. Do more of what really matters
You can grow your business in four ways: getting more clients, getting them to buy more often, getting them to spend more, and getting them to refer their friends.
Most businesses spend most of their time on money on the first goal only. This is insanity. Don't be insane. Instead, follow Jaffe's ADIA model:
Acknowledge - Clients, like all people, crave recognition. Examples: a personal thank-you note, regular progress reports, a gift.
Dialogue - Encourage clients to engage in conversation by giving them multiple ways to contact you, such as Twitter or the old-fashioned phone.
Incentivize - Encourage clients to recommend your business to their friends. Example: Reward them, either in cash or with gifts, for every new client they send your way.
Activate - Use social media to communicate with your clients, and encourage them to pass the word via blogs, Twitter, Flickr, YouTube, and Facebook. Example: Create a money-saving tip sheet that clients can download from your blog and share with friends.
Overall, though written mainly for big dumb companies, this book can benefit nimble smart companies that adapt and adopt the ideas.