There is an old marketing chestnut about it being easier (and cheaper) to keep an existing customer than attract a new one. The contemporary interpretation is that brand loyalty is king.
It follows that a marketing strategy that effectively leverages loyalty to maximise revenue from existing customer relationships is worthy of consideration. You might think of it as an extension of the “do you want fries with that?” theory. We think of it as the Brick Wall Strategy. Keep reading and you will understand why.
Imagine a spreadsheet-style diagram that lists all your customers (yes, every one of them) on a vertical axis. On a horizontal axis you see all your business’ products/services (yes, every one of them). If you took the time to populate the chart with your annual return for each product/service against each client, you could sum the columns at the bottom to show your total revenue. Overall, it would look a little like a brick wall – with blocks missing all over the place.
Now, imagine if you filled in all those blank spaces … if you could build a solid wall, with a brick (dollar figure) in every hole. Picture how your total revenue would look then. Very solid, indeed.
The Brick Wall Strategy, with its logical and methodical approach, makes that a real possibility. It lets you manage the current trend to vendor consolidation to the advantage of your business and it encourages you to invest in one of your business’ most lucrative assets – your existing customer base.
Sure, encouraging Customer #1 who currently purchases products A and B, to also purchase products C, D , E and F, requires a proactive and well-considered marketing program. But (as we know) that’s easier (and cheaper) than attracting a new customer who is unfamiliar with your business.
Every success slots another brick in the wall and generates revenue at your bottom-line, while strengthening your customer relationships and helping build you a better brand.
To discover more about how the Brick Wall Strategy can build your business better, contact a DDG Brand Consultant at our Melbourne Office on 03 9682 9388 or our Geelong Office 03 5226 9600.