Did you know that it typically costs a child care program at least five times more to obtain a new family than it does to retain a family?
And, for each one percent increase in family retention, that transforms into a seven percent increase in profits?
So, what does that really mean for you?
It means customer retention makes a lot more sense (and cents) than customer acquisition.
As a general rule, directors don’t feel comfortable with marketing. You go to all the expense and effort of attracting a new family and having them register and that’s something to be grateful for. But if it stops there and you let the family walk away without some plan in place to keep the relationship going, it’s a real waste. It’s not just one lost customer, it’s lost revenue and referrals that might have been.
A better tactic is for directors to focus more of their time, energy, and resources on nurturing and developing that relationship instead of being content. If you provide continual great service to satisfied customers then they’re going to refer others to you as well.
It just makes sense to focus more effort on marketing and selling to the people who already have given you money at least once. Instead, most directors continually focus their energy on trying to get more new families.
Of course, it takes work to build that relationship and obviously it’s one thing to get them, it’s another thing to keep them, and still another thing to keep them satisfied. How do you do that?
By continually providing them with the information and resources that they need. It’s really as simple as that and it’s a worthwhile use of your energy.
Here are some ideas for building on that relationship whether for an online or offline business:
- Throw in an unexpected bonus when they sign up for your program.
- Follow up with a thank you note or phone call. And at the same time see how they’re doing with your program and get feedback on what other services you can provide.
- Send out a physical newsletter or an autoresponder series of emails and ezines to continue sharing helpful tips.
- Connect with them on social media and refer them to other beneficial resources.
Successful marketing is all about making your customers feel special and well cared for.
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