Let me prove this point with an illustration:Businessman A and Businessman B start their businesses at the same time.Year One: Both use advertising and cold market methods to generate leads and convert them to customers. "A" doesn't stay connected with his clients and build relationships with them."B" stays in regular contact with his clients with intention of keeping them for life. Each gets 80 clients their first year, 80 clients the second year, and 80 the third year. Both have 240 clients, but.........Because "B" has follow up and focused on relationship building, 20% of his new business is now by referral only, so he has less marketing cost while "A" needs to keep prospecting to find 80 more clients.After five years, both have 400 hundred clients, but "A" still has to hustle and spend big dollars on marketing and advertising to find 80 more new customers. " B" however, now has his 80 new customers totally by referral from his current customer base( 20% of 400)- with NO advertising or marketing costs. except the minimal investment in his follow-up system.And because "A" never followed up with his current clients, he has lost a number of them to the competition. "B" has solid relationship with his customers who feel appreciated and that "B" cares about them, so "B" has a steady stream of repeat and referral business for life!If you want to spend less money on advertising and marketing, having a successful relationship building strategy is critical to make sure you are giving the right attention to your prospects and customers, and personalized follow up system is The KEY!
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