Page 320 - Duct Tape Marketing

304 Part V: Winning and Keeping Customers

Defensive marketing

In war and sports, defenders are the ones who promotions, and increasing advertising to win
protect from threats, withstand attacks, and new customers.
prevent opponents from gaining an advantage.
Defenders protect the goal. They place more Defensive marketers place greatest value on
emphasis on preventing an opponent from gain- keeping existing customers and protecting ongo-
ing an advantage than on winning new territory ing relationships by providing unrivaled service
or scoring new points. and communication. They fortify themselves
against competitive attacks by training cus-
There’s a marketing lesson in the analogy. tomers to expect service levels other businesses
can’t meet. They build customer loyalty — and
When sales are down or the balance sheet is reap the resulting benefits — by delivering con-
under siege, many businesses go on the mar- sistently enhanced value to customers who grow
keting offensive — reducing prices, launching ever more loyal as a result.

Why else does loyalty matter?

Consider this list:

ߜ Loyal customers account for higher buying rates and lower marketing
and service costs than other customers.

ߜ Loyal customers involve fewer business risks because you know their
credit status, buying preferences and purchasing patterns.

ߜ Loyal customers respond to customer service that costs far less than
the cost involved to recruit a new customer.

ߜ Loyal customers are the best source of qualified referrals to your
business.

ߜ Loyal customers lead to a loyal staff (and vice versa), because the long-
term relationships create a pleasant environment in which to work and
do business.

Making Customers for Life

Small businesses have an advantage when it comes to making customers for
life.

In most small businesses, the person who facilitates the sale continues to
have customer contact after the fact. As a result, the style and service mode
that attracted the customer in the first place continues unaltered, and the
customer’s buying decision is reaffirmed during every future contact.