Just How Much Does a New Customer Cost?
Every business is different, but each time someone comes to the point-of-sale, the opportunity exists to develop a lasting business relationship with that person. But way too many storeowners reject this business tool from their POS software.
As a retail consultant, I have heard the excuses of why capturing a name and email address is too time-consuming (and, in some businesses, it is true). But for a large percentage of businesses, that moment could be the start of something big!
Those people who give you their contact information are giving you permission to inexpensively contact them on a regular basis and let them know they are valuable to your business. Some studies show that these people who you contact are up to 10 times as likely to come back for an ‘unplanned’ visit. They are 20 times or more likely to become a valued customer.
The most frequent excuse told me is that the customer doesn’t want to take the time during the transaction to give you their name and email address. But, having worked with some high transaction businesses, including golf (which has a time limit for check-in), I can tell you the objection is more in the mind of the shopkeeper, rather than the consumer. It takes seconds, not minutes.
I have worked on marketing campaigns in small businesses and watched owners spend a lot of money on email lists. There are plusses to this approach because you can define the demographic of your customer base and purchase lists that are more likely to identify potential customers. And, it can give recognition to your business in cases where local residents may not know of your existence. But a less expensive way is to just ask that person in front of you for that information. That warm body is much more likely to open a marketing email from you than the person from a purchased list.
So if you have not been taking the time to do this, I suggest it be one of your business New Year resolutions. Make sure your staff is aware of this ‘mandatory’ change to procedures. It costs more money to find a customer than it does to take a first-timer and develop them into a good customer.