Invigorate Sales with Customer Retention, Referral Strategies

 

April 15, 2010

Avon, the No.1 direct seller of cosmetics is ostensibly implementing new strategies to accelerate sales, including a new product mix. A Reuters report also indicates another goal is to retain customers despite losing sales representatives.

Basically, for higher profits, Avon will cut back on its non-beauty products, such as jewelry and kitchen products while focusing on sales of hair and skin care items, including children’s.

This is in response to marketplace challenges. Avon’s North American revenue dropped 9 percent in 2009 after a 5 percent decrease the year before.

Avon’s dilemma serves as a reminder to review customer-retention strategies. It takes more than new products to invigorate sales.

First and foremost, if customer loyalty is not paramount at your company it should be. Businesses lose business 70 percent of the time it’s because customers feel taken for granted.

In this digital age with a heavy reliance on social media, the Internet is indeed important. But the No. 1 reason – 52 percent of the decision-making process – why people buy a product or service is what customers think of a company’s spokesperson and sales reps.

Yes, the quality of the product is important, but for customers to really feel like they’re making a smart buying decision, they want a good rapport and want to feel appreciated. That’s the best way to turn them into brand evangelists.

Here are more pointers:

• Like a marriage to enhance any business relationship, it helps to listen during 80-90 percent of conversations.
• Create an interactive dialogue and invite feedback.
• Don’t get defensive in the face of criticism even when the customer is wrong – simply take notes and use basic assertive techniques.
• Upon receiving a compliment from a customer, ask for two referrals – the names and contact information of “two people just like you who this need great product, too.”
• Provide added value without hurting the bottom-line.
• Prevent buyer’s remorse by reminding the customer of the value of the purchase.
• Say and write the magic words, thank you, at every opportunity.
• Depending on the level of purchases, make personal contact a priority.

Finally, remember women make 80 percent of all household-buying decisions. So adapt your strategies accordingly.

Elsewhere in this Marketing/Sales category are numerous related columns with proven solutions for maximum profits, including my “60 Ground Rules for Effective Client Service.”

So if you’re losing customers, improve your odds in heavy double-digits with excellent customer-retention and referral strategies.

From the Coach’s Corner, a new study reveals 73 percent of all women Internet users are heavy into social media. There are a lot of enlightening details in Website Magazine.