Relationship Marketing for business growth

Relationship Marketing is a long-term marketing strategy. Prime objective of this strategy is to build a long-term relationship with the client, with the focus of client retention. This type of marketing relationship is built by prioritising product benefits to the customer and customer service (before making the purchase decision, while making the purchase decision and after sale). Quality is a vital component maintained throughout this process. This is not an overnight yielding process. Investment of your time and resources will definitely give you long-term results.

Prior to talking about Relationship Marketing, have you decided what percentage of your revenue should be generated through Relationship Marketing?

If your answer is “No”, your long-term business strategy is in risk!

This percentage can vary based on the atmosphere maintained by various business owners in their organisation. Yet you need to have at least few long-standing, loyal customers.

In this article, we have summarised three steps a business owner should consider when building a Relationship Marketing Strategy;

1. Emotional connection
2. Meaningful reason
3. Leverage on your community

1. Emotional Connection

The moment we speak about customer loyalty you will remember some of the most popular consumer brands instantly. Even if someone talks negatively about these brands, their customers will defend the brand. What about your B2B business? You too can have loyal customer in B2B; because, it is eventually people getting connected more than the business.

It’s important to Build Trust with your client. Make sure from day one your promises have been delivered. Showcase your brand insight. This is about the people behind your products and services. Share with your clients the way your team works, how they are being treated, values and recognition within the company. This will allow your customer to understand your brand as a person to remember.

Deliver great customer experience. Great customer service is of no use, if that does not create a memory in the minds of the customer. Ensure the content, communication is valid and relevant to the occasion you deal with the customer. Remember to show the customer that the brand remembers them.

2. Meaningful Reason

There has to be a meaningful reason for the customers to stay with your products and services. You should imply this to the customer through different communication methods. Remember” Increasing profits” is not the most attractive phrase for a client to stay with you. It’s a result.

Recent research papers have indicated customers are more likely to stay with products those stand for something; i.e. preserving environment, giving back to the community, carbon free products, uplifting community lives and social responsibility.

What is the purpose of your products and Services? You should start showcasing this to your clients as a value addition.

3. Leverage on your community

When you have deep connections with your clients, it will automatically form a community. This will be a group of customers to stay together with your products and services. Then it will be the time to bring together your community groups, engage them, nurture them and automatically letting them to promote your products.

Written by Nara, ACMA, CGMA (CIMA-UK), MBA. Nara is a Commercial Accountant at SandS Australia. She has 15 years of experience in business, finance and accounting in senior managerial roles helping analyse, identify, and drive business growth

Edited by Sam Mansoor. Chartered Management Accountant, CPA, Chartered Global Management Accountant, Dip. Equity Trading. He has over 30 years’ experience helping businesses achieve immediate and long-term success.

Rapidly Grow Your Business Profits by Balancing this 5 Step Business Formula

 

Growing your business can be difficult. Balancing the profit growth formula increases sales and reduces costs wisely. Our SandS Resultants have identified most business owners and managers face difficulty in achieving this, (e.g. overpaying sales staff in a desperate attempt to increase sales, only to see sales & profits decline or stagnate), however striking the right balance generates large revenues, and rewarding bonuses for their sales teams.

There are three options. Avoid such decisions and do nothing, or make the wrong and costly decisions, both these add to costs and pressures on your business. The 3rd and right option is to face the challenges with the right skills, guidance and direction, and like our many clients, start looking at each challenge as an opportunity to get your business up, step by step, on its way to become an industry leader.

If you are that business owner or manager who feels this overwhelming burden of balancing the revenue and cost formula, a SandS Resultant can help. We have engaged with many clients to find the right formula to set up their sales teams that have become recognised powerhouses in their respective industries.

1. Re-engineering operating procedures: This is generating more sales while reducing costs. Have a clear step by step process map on the optimal way to progress sales opportunities. Have crucial decision steps as early as possible in the process (e.g. qualifying a good prospect); develop a clear list of criteria for these decisions, etc. etc. All these improvements will reduce costs through increased efficiency, which, along with increases in sales, has an exponential increase in your profits!

2. Stay connected to your stakeholder: Stakeholders bring opportunities to the business. Therefore, using all available avenues and platforms to stay connected with your stakeholders helps boost sales & profits.

3. Streamlining management processes, costs, and overheads: Managing costs via automation, outsourcing, eliminating non value adding activities, and streamlining processes will achieve efficiencies that help your business and teams run smoothly and rapidly improve profitability, speed, and customer service.

4. Set a motivational bonus structure: It is important for sales targets to be achievable, and beneficial for both the sales team earning the bonus, and the business earning the profits. This is a key area our SandS Resultants put right for our clients, to quickly and rapidly increases clients’ revenues & profits.

5. Recognize & reward high achievers: This is very important, to keep high performing employees engaged and motivated, while encouraging others to step up. SandS finance professional develops cost effective management information systems for our clients’ to easily identify their high achievers on a weekly and monthly basis. A lag in identifying high performers will demotivate the employees and retention of those skills will be impossible.

Written by Sasha, ACCA-UK, Certificate in Banking and Finance, MBA (General). She has many years’ experience in banking, finance and accounting, and lecturing for ACCA which helps her drive business growth.

Edited by Sam Mansoor. Chartered Management Accountant, CPA, Chartered Global Management Accountant, Dip. Equity Trading. He has over 30 years’ experience helping businesses achieve immediate and long-term success.

Have you ever thought about the impact from “Repeat Customer Orders” to your business?

Prime focus of majority of businesses is on generating revenue. The universal truth of attracting a customer to purchase your product or to obtain your service is based on main three factors. First and foremost reason is the Product / Service solution. What problem of theirs you solve, how important that problem is to them and how you resolve it. Second point is your Value Preposition; this refers to the value addition you pass on to your client in return to their time and investment. Third factor is the Service; this has an emotional element and depends on how well you create a memory and a positive experience in the minds of your customer.

When generating revenue it is important to focus on repeat customer orders. Having a clear idea on the impact of repeat customer orders can help you to devise strategies to increase revenue. This article explains the importance of repeat customer orders to your business strategy on following areas;

1. Cost Vs Return
2. Easy to Sell
3. Promoting Business
4. Customer Loyalty

1. Cost Vs Return

The effort and time taken to attract a new customer incurs a significant cost to your company compared to a repeat order. When a new client visits you with the mindset to purchase your product for the first time; make sure you have enough strategies in place to build trust. This will convert them to repeat customers.

At the same time, it is important to note that repeat customers spend more time and money in selecting and purchasing your products as opposed to new customers. According to research reports repeat customers spend 67% more than new customers when purchasing a product/service.

2. Easy to sell

When you have a data base of repeat customers already built; your new products and services should be offered to them first. Since you have already built trust based on your previous experience, they will definitely try your new products and services. You do not have to waste too much time and resources on potential customers who may end up not buying anything. Ensure you are paying enough attention to your existing customers and putting efforts into your customer retention.

3. Repeat customers means it’s a way to promote your business

Organisations invest significant amount of resources in promoting their business in various manner. However, business owners sometimes forget that their repeat customers are a free source of promoting their business. It’s their word of mouth which is more convincing and promising to attract a new client. If we quote an example, there are number of boutique hotels involved in eco-tourism around the world. They do their promotional activities only at the start-up level. They invest their time and efforts heavily in servicing and creating an unforgettable experience in their customer’s minds. This results in continuous repeat orders and new clients through word of mouth.

4. Customer Loyalty means long-term client retention

Loyal customer will stay together with a business in the long term. They will always have a cautious eye towards new product releases and growth of the company. This is a costless return a business owner can earn after servicing a client to their utmost satisfaction.

Eventually, it is important to understand how important repeat orders are to your organisation and invest your time and effort in increasing repeat orders.

Written by Nara, ACMA, CGMA (CIMA-UK), MBA (ICFAI University). Nara is a Commercial Accountant at SandS Australia. She has 15 years of experience in business, finance and accounting in senior managerial roles helping analyse, identify, and drive business growth

Edited by Sam Mansoor. Chartered Management Accountant, CPA, Chartered Global Management Accountant, Dip. Equity Trading. He has over 30 years’ experience helping businesses achieve immediate and long-term success.

Networking to grow your business

Business networking is the process of meeting, connecting with, and establishing mutually beneficial relationships with other entrepreneurs, business leaders, and potential customers. Most businesses owners tend to invest all of their time and effort in running their business. As a result they don’t have time to spend on networking and making connections. Networking can be beneficial for businesses as it helps develop sales opportunities, therefore business owners should make it a practice to spend some time every month on making new connections.

In today’s world success is determined based on how well the company is able to build trusted relationships. This is where networking would prove to be useful. We at SandS have outlined ways that you could use networking to grow your business.

1. Support community events

Keep your business in the radar by partaking in community events. Frequent participation in community events will keep the business visible in the eyes of potential clients. When you see an opportunity to help your local community, do not hesitate to help out. This could be in the form of supporting people affected by natural disasters, sponsoring families in need and contributing part of sales made to a worthy charity.

2. Take care of your staff

Employees are the most valuable assets of the company so make it a priority to keep them content and motivated. One such means to take care of your staff is by setting up scholarship programs for the children of employees. This will help generate good word of mouth as the employees will be more likely to recommend the company to their contacts.

The company can also invest in programs to improve the health and wellbeing of employees. One of our clients in the Signage industry has engaged their employees by offering fitness training sessions which is a good opportunity for team members to connect with their colleagues and have fun.

3. Use social media effectively

Social media sites like LinkedIn, Facebook and Twitter can be used as part of your digital marketing strategy. Not only is this an effective tool to achieve growth, it is also cost effective. Use these sites to interact with your customer base and attract new customers. Facebook and Twitter could be utilized to organize contests and giveaways which will keep customers engaged with your brand. You can also generate leads by posting content in Linkedin which are relevant to your target audience.

4. Join a business oriented community group

Connect with business owners by joining a business oriented community group which gives you the opportunity to exchange ideas and help each other grow. You could join the local Chamber of Commerce which advocates for businesses in your industry. Rallying together with similar businesses will keep you updated on latest developments in your industry and also makes it easy to negotiate with policy makers on any laws that need to be amended.

Written by Zara, ACMA,CGMA, BBA(Accountancy & Finance). Zara is a Finance and Commercial Executive at SandS Australia. She has 4+ years’ experience in Auditing, Finance and Accounting which helps her drive business growth.

Edited by Sam Mansoor. Chartered Management Accountant, CPA, Chartered Global Management Accountant, Dip. Equity Trading. He has over 30 years’ experience helping businesses achieve immediate and long-term success.

How to attract your right target market?

Target marketing is important to every business. When selling your products or services; if you’re trying to approach everybody, you’re going to have a difficult time reaching anybody. Vague and generic messages are far less likely to resonate with consumers than specific, direct communication ; this makes target marketing a vital area to focus. Once you select the target market; it is also important to have a strategy to attract them.

SandS has helped SMEs to develop their go to market strategy to attract the audience. Shown below are the areas business owners should consider when attracting your audience after selecting the right target market.

1). Marketing Channel

2). Differentiate and address the problem

3). Continuous improvements.

1. Marketing Channel

This can be direct marketing, indirect marketing or digital marketing. Some business uses a combination of marketing channels. It is important to select the marketing channel based on the life time of your product. If it is new to market it may require a direct marketing method to build trust and confidence among your audience. This method is valid for most organizations providing professional services. Digital marketing (including social media marketing) has become one of the hot topics these days. In certain instances, this method does not bring expected results for most businesses. Digital marketing can be used to create awareness during the very early stage of a product; but it is not worthwhile to expect 100% of your revenue from digital marketing. On the contrary; if your brand is established and has spent some years in the market; digital marketing will boost your revenue. For certain services such as insurance; indirect marketing works quite well as opposed to other channels. Carefully analyse your product and service features before investing on the marketing channel.

2. Differentiate and address the problem

If your product or service is yet another prototype available in the market; it will be less attractive to your audience. Ensure that your product /service answers the specific problems. This avoids confusion and make it easy for the audience to understand product features. Product differentiation should be done at the product designing stage. This can not be investigated after introducing a new product or service. It is also important to address emotional aspects of your product/service to your audience. This makes your product/service more attractive!

3. Continuous improvements

Your product/service should be upgraded with the changes in the market and technology. When upgrading your products and services; it is important not to forget your customers who have already purchased your products. Ensure that a strategy is available for them also to enjoy new features/facilities when you upgrade it. This is an area forgotten by most of the business owners; when they do product/service improvements.

We helped a client in the signage industry to improve their go to market strategy years ago. We identified various marketing channels to use based on the life cycle of the brand. This helped our client significantly and they are still with us for more than a decade as a loyal customer.

Written by Nara, ACMA, CGMA (CIMA-UK), MBA (ICFAI University). Nara is a Commercial Accountant at SandS Australia. She has 15 years of experience in business, finance and accounting in senior managerial roles helping analyse, identify, and drive business growth

Edited by Sam Mansoor. Chartered Management Accountant, CPA, Chartered Global Management Accountant, Dip. Equity Trading. He has over 30 years’ experience helping businesses achieve immediate and long-term success.