Marketing Mantra: Relationship Building vs Revenue Generation- what should you focus on?
Your company’s net worth doesn’t depend on the amount of money you spend on ads. It depends on the relationships you build.
Everyone is interested in running ads, collecting data, and somehow reaching out to their prospective audience.
Here, are they forgetting the real essence of marketing?
Answer is a big Fat Yes !!!
Where exactly are they lacking, any idea ?
They are failing to understand the definition of Marketing.
So, How do we define the Marketing ?
Marketing is a simple process of identifying the prospective audience and build automated systems to reach out to these prospective audience consistently to communicate your company’s purpose and mission.
If you haven’t understood this secret until now, you will fall out of the game soon. When you don’t concentrate on value creation activities, you end up wasting money on ads. The lead conversion rates may remain around 2-5%.
In this way, you fail to build long lasting relationships with prospects and find it difficult to retain them. You may lose them to competitors as well. It can terrifically affect your ROI too.
“It takes months to find a customer… but just seconds to lose one” —Vince Lombardi
In this era of digital marketing, you need to frame the most effective marketing strategies of customer value creation. Here’s the simple 4 step process to create value and build long lasting customer relationships so that your conversion rates hikes up to 10-30%.
1: Identify your ideal customer & what they want
It is not just identifying customers randomly. You need to assume a set of customers who have problems which can be solved with your products or services.
You can win in the long run by filtering the most ideal customers who are likely to buy your products as you are able to find a solution to their problems or needs and aspirations. The concept of simply fishing in a dirty pond will not serve in the long run. Here, you need to weave the perfect strategy of right customer acquisition.
The quality of customer acquisition matters than simply its quantity.
It’s not just lead generation that will help you in the long run. You must focus on how to give value to your customers so that they will become your loyal fans.
For identifying your target market, you need to evaluate who is your present customers, and for what reason do they purchase from you? Are you solving their problems or aspirations? Search for regular attributes and interests. Another aspect is to check out your competitors.
Who are your competitors focusing on? Who are their present customers?
Try not to pursue a similar market. You may discover a niche market that they you are overlooking. Write out a list of each component of your product or services.
I.e List all the advantages it gives. When you have your benefits recorded, prepare a list of people who have a need that your benefit fulfills. Figure out not just who requires your product or services, but also who are willing to pay for it.
In this way, you are not just selling, but adding enormous value to customers by fulfilling their desires and aspirations.
ALSO READ: 7 Steps List Building Formula
2. Offer them a lead magnet
Getting traffic to your site is good, however, it pretty much pointless if those prospects don’t convert.
There’s one strategy to use over all others to produce new leads:
A lead magnet.
But ‘lead magnets’ aren’t a newly introduced concept. They’ve been a vital part in an advertiser’s arsenal for decades.
You give prospects something of high value in exchange for their contact information (usually email id). This gives you permission to market to your potential customers (those who sign-up for your lead magnet).
Lead Magnets don’t need to be extensive or complex.
A long and complex Lead Magnet will probably likely convert poorly.
You need to take care of a particular issue with a particular answer for a particular segment of your market. i.e Lead magnets should be super-specific.
Here’s the secret…
Your Lead Magnet must be consumed by the prospect for it to have an effect.
The ideal Lead Magnet will offer tremendous value within five minutes of the opt-in. This is a “rule of thumb,” obviously.
However, we don’t suggest, for instance, a small scale course delivered in more than 14 days or a 200-page digital book as a Lead Magnet. These Lead Magnets are seldom consumed entirely.
3. Strategically nurture them
Business relationships won’t grow unless they are nurtured.
You should focus on giving 90% value and rest 10% sales
To give a better value to them, you need to keep an eye on what your prospects are sharing and liking on all social platforms. This gives an idea of what are their problems or needs.
It’s pointless to simply create leads because those leads don’t consequently translate revenue. For that, you need them to convert.
Stay In Touch And Nurture Relationships Overtime to convert your contacts into contracts
In order to convert prospects to loyal fans, suitable changes in the sales funnel is necessary so that these prospects can bring sales.
Lead nurturing is the process of building and nurturing customers throughout their buying process.
The objective is to manage them through various phases of your business channel and in the long run get them to convert. You have to serve them with relevant content and information depending on where they are in the funnel.
It’s a well known fact that over 80% of new leads will never bring in a sale. But, nurtured leads are 50% more sales-ready. At the end of the day, nurturing your leads will improve your chances of converting them and also improve your revenue in the long run.
4. Offer them a tripwire
If you’re unhappy with your conversion rate. You need to analyze why.
People simply aren’t purchasing what you’re selling. The solution often lies in offering them a tripwire.
Tripwire marketing is an acceleration hack that persuades target customers to purchase something small from you instead of high-cost products or services.
Tripwire should be able to get all the costs spent on marketing activities.
To boost conversions, once in a while, say every 15 days you need to push tripwires to such prospects who wants problems can be solved by you.
You may make a mini-course that supplements your main course. It could incorporate one or two short videos, a couple of checklists, and a few articles or even a webinar.
You may either sell a smaller course $15 or even $100. But the main intention is to make your tripwire attractive to new customers. Most people are more willing to spend small amounts of money than a huge chunk.
ALSO READ: 6 Steps Customer Acquisition Formula
At Digitechniks, we deliver our customers what we promise and this helps us to build long lasting customer relationships. We at Digitechniks believe in building meaningful relationships with our prospects & audience. Revenue generation is a byproduct of delivering consistent value and we stand for creating great value to our customers for sustainable customer relationships. Let’s see what we do for relationship building process:
- Identify your ideal customer & what they want
We assume and identify our set of audience who are marketing professionals, business owners, students who aspire to transform people’s lives by creating meaning employment . We identify their problems and aspirations to ensure that we can solve it in the best way by creating value and building long lasting relationships with them.
- Offer them a lead magnet
In order to open relationships with our prospective customers. We conduct free webinars & workshops.
At this Phase, a small percentage (5-10%) of people believe us and buy our programs.
- Strategically nurture them (90% Value and 10% Selling Rule)
Once they share their contact information with us, we nurture them through weekly content, blogs, emails etc.
At this Phase, we achieve another 10-30% conversions and conversion rates purely depends upon the quality of content that we use for nurturing.
Nurturing activity will happen on a consistent basis. Some percentage of the people in the list gets converted customers, some percentage of the people become our brand advocates and some percentage of people become leavers.
This is how we effectively filter our right customers who eventually convert in to our loyal fans and with whom we are able to build good relationships.
- Offer them a tripwire
Once we filter the most ideal & loyal customer base, we offer them what they are searching for with high value content. We offer programs like Digital Media Strategy and Planning and Integrated Digital Marketing Certification Program to fulfil the aspirations of our target audiences. In this way by solving their needs and creating value, we ensure our customers are satisfied and are retained for the long run.
As a final note, the future of a successful marketing is Value Creation. Simply follow the above relationship building process for high ROI and increased customer retention. As a business owner, would you like to get the best support from us for good customer relationship strategies? If yes, join with us to get proven personalized strategies that will help you build long lasting and strong customer relationships.
Do you want to learn Advanced Digital Marketing Strategies? Register for our FREE DEMO on Integrated Digital Marketing Certification Program.