14 Strategies For Acquiring & Keeping Customers For Life (1 of 2)

Welcome to part 2 of 14 Strategies for Acquiring and Keeping Customers for Life with the Magnetic Marketing Podcast. This episode, we're picking up with Dan Kennedy and Bill Glazer, as we've already covered not just the 6 reasons your customers are leaving right now, but the 7 ways to be able to keep them for life. Those are offering a truly superior product or service, the source of where your customers are coming from, understanding consumption results, managing expectations, speed of delivery, and keeping them engaged. Now, this is where we finally cap everything off. We cover the last 7 strategies for acquiring and keeping your customers, and the question remains on where you should be focusing the most. Let's jump in.

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Welcome to the Magnetic Marketing Podcast with your host, Dan Kennedy.

Hello everyone, this is Bill Glazer here on the call. And, uh, Dan, how are you?

I'm doing fine.

This is actually part 2 of a call that we did 2 months ago on how to get and keep customers for life. And of all of those that were on the call, and/or you all certainly have received the CDs of the call, you know that there was such a robust list of things to think about that we didn't get it all done in one call. So when on the previous call we talked about things such as how to get and keep customers for life. Number 1 is to offer a truly superior product or service. This is by way of review. Number 2 is the source of where the customer comes from makes a big difference on retention. Number 3 is consumption. Getting your customers to actually consume your products or services makes a huge difference on retention. Number 4 is results. If there's something that they get that they actually have a good result from, and it doesn't necessarily have to be like the business of Glaser Kennedy where results are to be— you get better results with your advertising and marketing. But even if they buy a product from you and they get a good result from the product, I mean, if you're in the business of selling, you know, lawn mowers and they get a great result with that lawn mower, then they're going to want to get more products from you and stay with you longer. Number 5 is manage your expectations. And that's a real big one because a lot of people don't even know what to expect when they get products or services from you. So sort of telling them in advance of what the expectation should be is certainly a key factor. Number 6 is speed of delivery is also a big factor in getting and keeping customers for life. And when somebody buys something from you, that's when they want it as quickly as they possibly can. So speed of delivery. And we gave as an example— we gave many examples 2 months ago, but one of the examples we gave was Zappos Shoes. Have really excelled in the online products business by being able to deliver so quickly once you buy it. And then number 7, I believe we got to number 7, which was keep them engaged. So to continually to do things with— that they know that you're still there and keep them doing stuff. So schedule appointments, do surveys with them, contests with them, newsletters. And as you all know, Dan and I are big, big fans of newsletters., and also making yourself interesting. And what Dan has developed an entire program on is making yourself a person of influence, making yourself influential. So that was sort of a review of what we did 2 months ago. Now we'll just sort of dig into some more things on this list. And let me just also, before we dig into more things, I just want to say by a comment that I made 2 months ago, which is I don't want anybody to forget is the fact that most people spend too much or all their energy or most of their energy on getting customers where they don't really give enough thought to keeping customers. And the big money is once you get them is into actually getting them to either stay with you longer and consume more from you. That's where the really big money is. So this is a really, really, really important topic. So the next one on our list, which we didn't get to last time, so now this is new, is pain of disconnect, which I would say is kind of like if you can make this work, it's the game changer. And Dan, can you sort of give everybody an example why this is so important and maybe some examples of how people have accomplished pain of disconnect?

Well, the reason it's so important is because people get bored, disinterested, seduced, whatever, really no matter how great of a job no matter what job you do with your core goods and services, and even with value added, there is undeserved attrition over a period of time. And it really doesn't matter whether you've got a restaurant or a clothing store or a dry cleaners or our kind of business. There is this undeserved attrition. Where people meander off for absolutely no good reason other than they've been with you for a while or somebody seductive shows up. And so the only real way to prevent that is if they can't, or it is so— we use the term pain of disconnect— so painful, so inconvenient, so troublesome so unpleasant to meander off that they stop at the gate and turn around and come back. So I mean, that's why it's important. There's two kinds of pain of disconnect. The weakest of the two is purely emotional, relationship, obligatory, all of those kinds of things. The stronger is where there is something integrated into their business if you're B2B or into their life if you're consumer that gets turned off, disconnected, disrupted, and is troublesome and inconvenient to put back in place. The folks that have the ultimate pain of disconnect and are typically the people that get paid first every month are the utility companies and the telephone companies because it's extremely inconvenient and unpleasant to be sitting in the dark and in the winter in the cold and/or not to be able to receive or make a telephone call. So, you know, they've kind of got it locked down. For the rest of us, we have to sort of work at it. In the information marketing businesses, Most of this is done with services, often in my client Craig Proctor's business with real estate agents. It was providing them with content-loaded websites and pre-recorded messages. Michael Gravette, who's been in one of your coaching groups and is a client of mine, Michael, the same sort of thing. His distributors and dealers of his products are using his websites crafted for them but controlled by him that can be unplugged should they drop out of a program. Maybe in the info marketing business, the guy who's done it best is Michael Jantz and Property Casualty Insurance, or that the agent is really using his system as a has a dashboard to run their business, everything from scheduling and quotes to follow-up marketing systems, et cetera, et cetera. And again, that all gets unplugged. On the consumer side, it's a little more difficult to figure all of this out, but I don't think it's impossible. And the fact that it is difficult Makes it all the more desirable to do because, you know, it means your competitors won't. We have it— my client, Guthrie Ranker, with Proactiv has it inherent in the product in that the Proactiv treatment for acne— most people who have acne have acne until they, for the most part, outgrow it, although adults have it too. A large number of people have it in their teens and then don't have it anymore, and during that period of time, if they stop using the product, the acne comes roaring back. So there's both the pain of disconnect and an immediate return of the customer who did stop usage who realizes that they've created a problem for themselves. Years ago, when I was a member of the Phoenix Playboy Club, the Playboy Clubs did a great job basically with impending events so that you were always being shown something coming up in 3 weeks, 4 weeks, 5 weeks that kept you involved. They were maybe one of the early continuity users too. You could, your membership could be term or it could be a monthly charge. That's sort of the principle.

Yeah, I mean, and I will add one more, but I will preface by saying the one more that I'll add are not as strong as the ones that you mentioned, Dan. So, you know, you obviously mentioned ones that really are strong PAMP disconnect, but another one that I often will see, and in my case, I actually have been succumbed by it, and in other cases I've recommended it to clients of mine, is where there's a differential in pricing. So now if you were to leave, your pricing becomes higher, and so therefore people will stay just to get the better pricing. And so that is yet another way to do it.

So the—

I would— Dan, I don't know if you're about to agree with what I'm about to say, and if you don't, then please, you know, voice your opinion. But of all the things on the list, and we have more to go over, If you can figure out pain and disconnect, it may be the strongest or at least one of the top 2 or 3 strongest in order to keep customers for life. And so you really ought to give some heavy thought to this of how can you add something to your business that if somebody were to leave you, they would think very strongly about not doing that because they would be afraid of losing something. So the next on the list as far as how to get and keep customers for life— and this is number 9 on the list— is identify spikes in existing customer loss and do things to address it. And I would tell you that of everybody that I've ever worked with, and as well as at Glaser Kennedy when I was running it, this, you know, once you have data and you want to be very diligent about looking at your data, you will find spikes. in when customers are exiting. Those people, and I know this is not an information marketing call, but those people that are in the continuity business in information marketing, they usually find the biggest spike shortly after they offer some kind of a free trial. That's usually when the biggest exodus goes with members. But that doesn't mean that's the only place. And oftentimes you'll see yet another spike in month— excuse me, month number 7, month number 12, whatever it is, you just have to know that. And again, this is for any kind of business, brick and mortar. When I had my menswear business, we also realized that if we didn't see a customer within 7 months, that was a spike for us that we had to address, and then we would actually just put that customer into a lost customer reactivation campaign and let them know that they're missing. So this number 7, I'm sorry, number 9 is to identify spikes in existing customer loss and do things to address it. So this does require you to be tracking your customers very much so and to be running your business with metrics. Dan, anything you want to add to that before I move on?

Well, yeah, well, first of all, I think you— so nobody misses it, you said 2 very important things. One, that you need to know One, you need to have alarm bells that go off at certain points that you are tracking the behavior of every single customer. And two, if they have passed the point of alarm, you ought not be shy in identifying them as a lost customer and communicating with them in that way. Every business, as you said, and You said 7 months. I suppose it's about the same. I would have thought a season or no more than 2 season changes of clothes. But I mean, every business— the example that I often use is if it's a restaurant and it's the local diner and Charlie comes in every morning for breakfast, the alarm bell ought to go off the first time Charlie isn't there. Now, he might be out of town visiting his grandkids, but on the other hand, He might be dead, in which case you could perform a public service of finding him. Or he might have been invited to go have breakfast somewhere else and meet a buddy at the diner across town, and that snaggletooth waitress he liked, and she burned his toast just like his ex-wife did. And if you're not immediately on that, maybe he's gonna go back there tomorrow, and by the third day, he's formed a new habit. So this can be real tight or it can be a matter of weeks. In the dry cleaning business, it'd be a matter of weeks. It could be in your business a matter of months. But every business ought to have alarm bell points where if somebody has not made a purchase or returned and come in that— within that period of time, the alarm bell goes off, and now some sort of campaign occurs to rescue that person. There's also, in some cases, the opportunity to be preemptive. And again, although this is not an info marketing call, we often, in those businesses where there's subscription/continuity and you know there's a spike point, both of us have our clients intervene just ahead of that spike point with a surprise gift, a big impending event that's going to occur a few weeks past the spike point, some device designed to just nudge them past that point, which generally then buys you a significant period of time to the next point. And in big numbers businesses, even one more month, one more payment is significant. In small numbers businesses, obviously every customer is of significant importance. So whether you're running a big company or a small company, this has its own kind of importance., and it certainly can be done. Again, just as you said, I find most people are woefully negligent about this. They don't— they haven't watched their data. They don't know where these dropout points are. If they do know them, they haven't connected alarm bells to them. They don't have a system in place for what to do when the alarm bell goes off. And so, as you said at the top of the call, they're in the pursuit of the next new customer while a bunch of customers they have are falling out the bottom. I talked earlier today to a financial guy, and on the insurance side of his business, you know, I said, how often do you, do you contact your clients? You know, once a year we suggest they get an annual review. Well, once a year is a long darn time in somebody's life, and there's— that means there's 365 days when somebody could show up and sell them some other kind of financial product, more insurance, switch their insurance. 365 days you could have gotten a referral that you didn't. I mean, that's just too long a time to leave a customer alone. And so, really everybody has a lot of opportunity here that for the most part they're not on top of. I would wager probably in your old original industry when you started to teach lost customer campaigns that that was fire to cavemen and also probably resisted by most. And I think that's true in most businesses.

Yeah, and I'm not sure if it was resisted, but I would agree with you that it was harder to came in. You know, at the recent FAS implementation boot camp that I delivered in Chicago, that was predominantly for new members, but there was a lot of seasoned members, about 20% of the room was seasoned members. I actually delivered to people like a fill-in-the-blank lost customer reactivation campaign, 5 steps by the way, that depending on whether they had the email addresses or not, it would be 3 or 5 steps. And the feedback that I got on the forms was that was like one of the things they got that they appreciated the most. They appreciated the fact that they could just fill in the blanks. So most people are kind of— I find they're kind of receptive to this because they get the concept that they lose customers, and— but they're not really good about really chasing them. Again, if you identify your spike of when somebody is about to exit on average, it's a good time to be in front of them. Let's move on to number 10 on our list. Number 10 is recognition. Again, the topic is how to get and keep customers for life. Recognition, I would probably tell you that a lot of people are might even be a little surprised that I have that on the list as far as recognition. But I guess first I'll just flip it right over to you, Dan, as far as how does recognition sort of work hand in glove with getting and keeping customers?

Actually, just keeping them, really. I now forget who I originally heard it from, but it's an old-time— it may be Dale Carnegie.

Material.

Maybe Jay Douglas said— I don't remember. But whoever it was said, you know, if you, if you picked 20, any 20 people out of the white pages and sent them all a congratulations card today, uh, 18 of the 20, uh, would think that appropriate, that they had done something to be congratulated for.

Uh, but that's, you know, general—

I've never heard that. But I mean, generally speaking, they don't get congratulated.

Right.

And so one of sort of the emotional vacuums of life, I think, that most people are, are dragging around with them is lack of recognition, lack of appreciation for who they are and what they do. And, and so various businesses find enormous opportunity in filling this. I mean, I came up in direct sales, and, and the businesses that work like Mary Kay are fueled by this— providing an environment where people can get appreciation and recognition because they don't get it at work and they don't get it at home. Bowling leagues, that whole business is fueled by exactly the same factor, not the only factor, but it's a significant factor. And so when you stop to think about it, you have whatever business you're in, you have a bunch of customers or clients or patients who have this emotional vacuum. For the most part, they aren't getting a standing ovation when they arrive home at night. They aren't getting a standing ovation when they arrive at work in the morning. Badges and buttons are few and far between, and so seeing their name in print, seeing their photograph in print, being customer of the month, having their story told, walking in a place of business and seeing their picture up on the wall, all of this stuff is a lot more significant than most of the people on the call might understand personally because most of us tend to get a fair amount of gold stars if we own a business, we're actively involved in marketing, we're having a lot of personal victories, we're closing sales, we're having customers or clients or patients express appreciation to us. Maybe in the association we belong to, amongst peers, in our mastermind groups. So we get a fair amount of this, and we tend to lose sight of how little most people get of it. So every business has an opportunity to, to capitalize on filling this emotional vacuum.

Yeah, and let me just add one little thing. Actually, you alluded to it, but I just want to make sure everybody's very clear is that, so there's sort of a two-prong to this. One is that when somebody gets recognition, they feel really good and they're more likely to stay longer. The other thing is that if your recognition can be tied somehow to longevity of customer, that somebody is with you, now you're showing by demonstration that this is something for you to do, which is to stay longer. And a lot of people might just stay in order to get to that level. So like, for example, if you, you know, in your newsletter every month would congratulate all your customers who have reached 2 years of being a customer, and then all the ones that have reached 5 years of being a customer of yours, and name them. Now it's showing that the right thing to do behavior-wise is to stay longer, and then people would— some people would naturally stay just to hit that special designation that I am now a 5-year customer. So it's a very clever strategy, which is actually to use recognition in your businesses in order to get them to stay longer. The next one on the list, which is my number 11— How many are on the list?

Actually, I've got 14.

Wow. Yes, and let me also say that I edited this down.

That's a version of how long have I been up here, yeah.

I've edited this down from like 28, so I've just sort of picked out 14 that I thought would be most relevant to the largest array of our members. But number 11 on the list is ascension, is to actually get them to ascend up. So for example, one of the best ways to see ascension is in the educational system. You go to college and you start with undergraduate degree, then you get a master's degree, you get a PhD. You know, it's ascension. You know, martial arts is a great place to see ascension. You know, you come in, I don't know what color you're for, maybe a white belt, I guess, but you want to eventually move up to getting a black belt. So there, that's a way to ascension.

So yeah, they, they have it down to us to a science, and the smart ones have you committed to the black belt from the beginning. So they have you committed to the whole ascension structure from the start, which is very cool.

So if you can, if you can add some kind of ascension to your business, and, and, and in some ways it could actually go hand in glove with recognition. Which is the last one we talked about. But if you can add ascension where now you move to the next higher up level. So for example, I mean, listen, Glazer Kennedy is an ascension business. You know, coming as gold, from gold you come to diamond luxury, from diamond luxury you can send up to mastermind. And actually at the upcoming InfoSummit there's a new level that's going to be between the two of those that Lee Miltier is going to be conducting. And you'll— those of you at the Info Summit, which I'm sure most Diamond members will be there, you'll, you'll hear about yet a new level that to ascend up to. So Glaser Kennedy is an ascension business itself, and, and there's no doubt about it that the higher up somebody ascends at Glaser Kennedy, the longer they stay as a member. So all of you that are probably listening to this right now that you know you're diamond members, you're probably saying to yourself, gee, I've been a diamond member for some time, and part of that is due to the fact that you've ascended up. So let's move on to number 12 on the list of once again as to how to get and keep customers for life, and here I have on this is I have targeted content slash offers to segments of customer lists. So in order to, again, to get and keep customers for life is to now do the thing that both Dan and I love doing with the list, which is do slicing and dicing. Depending on different variables, which could be things such as length that they are a customer, based on things that they've bought, as a customer and then tailoring special content and/or offers to them that also very much leads to retaining customers for much longer. And again, I believe every business can do that.

Dan, do you agree with that? I totally agree. I, again, I think most Most businesses are, and business owners, first of all because they don't see marketing as their chief job. They see fulfillment of deliverables as their chief job, and so they're too busy with fulfillment of deliverables to do anything sophisticated, and they don't understand the importance of the principle of personal relevance. But if you're running a flower garden center, you've got some customers who have gigantic yards, and you've got some people who live in condos who want something out on their patio or their deck and are growing flowers in a real small space. Well, those are two different customers, and if they get segmented out and talked to differently, and given different information and given different offers and invited to different classes, there's no doubt you are going to keep those customers longer and get more activity and productivity out of them than if you are always lumping them together and delivering generic messages and generic offers. And so personal relevance is just a huge, point of leverage that you do not very often see used well by rank-and-file brick-and-mortar businesses.

So I guess your homework assignment is to figure out, number one is, what information do I know about my customers that I could use to make decisions of how to create individual offers and/or content to them, and then implement those sort of segmented campaigns to them, and you will find— not only will you find that that will get your customers to stay longer, but you also find that you'll get a better return on your investment/results by doing more segmented offers and content to your customers.

And if you don't know anything, Then you gotta get busy finding out something because there are people that really don't know anything about their customers.

Yeah, that's a shame. You know, I guess, I mean, I agree with you. You know, I guess that my mind just doesn't, doesn't be able to compute that. It's just hard to believe that a Glaser County member today would not be thinking about The number one asset they have is their customer list, and they want to do everything they possibly can to get as much information about the customer, including all the ways I can communicate with them online and offline, and also when they bought and what they bought. And, you know, that makes a dramatic difference in being able to have a much more successful business, forgetting keeping them.— it's a much more successful business. Number 13 on the list is to— in order— and this is again one that a lot of people will likely not have thought of about how to get and keep customers for life— is to actually get them to refer you people to you. It's an interesting thing that when you get somebody to refer to you, just the act of referring makes it more conscious in their mind that this is a place that somebody else should be buying from or consuming from. And now therefore, they're reminded that this is the right place for them. So referral activity will actually get people to stay longer with you. And see, the interesting thing about that is that if you do it right, that once you get somebody to refer, the person who refers almost becomes an ambassador to the person that they do refer to you to get them to buy into the premise. So like we see it a lot at our local chapter meetings, which is one of the number one way that the independent business advisors, correctly by the way, grow their local chapter meetings is member get a member campaigns. And oftentimes the person that is referring somebody new to them is sitting next to them in the meeting sort of, you know, communicating with them about why this is the right place to be and why it's such a good decision. Now it doesn't have to be in a meeting setting. It could be in any kind of setting at all. But getting somebody to refer will actually get the person who refers to actually stay as a longer customer. Of course there's another huge buy-in side product advantage to that, which is you also get new customers that way. So not only do you get the customer refers to stay longer, but you also use it as a new customer acquisition strategy as well.

Dan, anything you'd like to add to that? Well, in many businesses, that is nearly another form of pain and disconnect in that it's very difficult for me to abandon a business that I have convinced 3 or 4 of my friends, neighbors, or peers to be involved with, especially if everybody kind of sees everybody coming and going or patronizing that business. So as soon as you get a customer to get 2 or 3 or 4 people around them involved with that business, they're sort of locked in to continuing to patronize it unless and until it, you know, does something horribly egregious to them. So not only is this important, it's important to try and make it happen early, not later, because it does have such a such a high retention effect, sort of a momentum going forward that you want to strategize to try and get some of this referral activity very quickly after the first transaction. On the other hand, as you point out, because it is reaffirming, because it reminds the customer, number one, all of the reasons why he's a customer. Anytime he is inveigling someone else in becoming a customer, it's also important to do it periodically all through the year. And you're absolutely right, people underestimate, you know, they think about getting referrals purely in the context of here's a great way to get more customers. They really don't think of it as a as a mechanism to keep the customers they already have engaged in repeat buying. But it is that, and it can be used for that. And again, in any business that patronage is visible or talked about, once— once I've brought a few people into the fold, I'm kind of stuck unless and until something really bad happens.

Yeah, and by the way, a lot of these strategies link together, and one of the things that links directly to this one, which is to the referral strategy, is when we talked about recognition, because when you get somebody to refer, the smartest thing that you can do is to recognize the person who refers to you and for multiple reasons. A, somebody who's recognized for referring is much more likely to refer more often. And number 2 is it's again a demonstration of the right thing to be doing as a customer of yours is to be referring. So oftentimes people will do that in their newsletters, but there's other media to be doing it in. So again, this all links together to— to recognition, which is referrals. So again, referrals will— I mean, again, the 3 big things is that it would get somebody to stay longer as a customer. It will get you new customers, and it also will probably get other customers to refer to you other folks. So it's a very, very powerful strategy when you talk about how to get and keep customers for life. Well, the last one on my list of number 5, 14, I think it is, is attacking of their manhood/womanhood/personhood. So depending, I want to be politically correct, especially since this is my last Dive and Call. I don't want to upset anybody. So I went all the way across the, you know, everything, manhood, womanhood, personhood. But Dan, actually I'm going to move this over to you And could you sort of talk about how this will actually get customers to stay longer?

Well, in the early stages, this is some version of the anti-quitter talk, making it really about the character of the customer who might be quitting, dropping out, leaving, rather than it being about the provider, the product, or the service. On a long-term basis, I think that there is a— in many businesses, there is an opportunity to somewhere between overtly and subtly make belonging a path to superiority over other mere mortals, and not belonging a weakness. And that easily applies to health clubs, weight loss businesses, all-natural and organic grocery stores, supermarkets. And so if that's the case, then in advertising, marketing, communication to members and so forth, you can always be identifying, acknowledging, talking about the, the weak versus the strong, the dumb versus the smart, and giving kudos to your members, followers, customers, clients for being on the right side of that line. And of course, every time you do that, it sort of stops anybody in their tracks who may be drifting away. And challenges them and intimidates them and reminds them that the drift is about something more than am I going to stay a member of this health club or not, am I going to get to the gym this month or not, am I going to— when I trade in my car, am I going to buy a really good luxury car or am I going to buy some little tin can. It's about more than that. It's about conveying a message about yourself and who you are. And people don't like to be identified or have to self-identify in any way, shape, or form as a loser, and they will go to some considerable extremes for that not to happen.

Yeah, and you know, and Dan, as you know, I for years have been saying that this type of attacking of the personhood should always be somewhere in your marketing campaigns. This is not only about keeping customers, but it's also about attracting customers. So like, uh, in the book Making Them Believe, um, and they're, uh, Dr. Brinkley, uh, in the early—

was it 1920s, Dan?

Is that right?

1900s.

1900s. Uh, there's, there's actual— in the book, there's actual follow-up sequential campaigns that when he got leads, uh, that he showed how he got more and more tougher later on in the campaigns where he was actually attacking their manhood. In that particular case, it was really attacking their manhood. But it's a very smart strategy to be using it in customer acquisition, not necessarily early in the game, but certainly at some time in the game. And also, it's a very smart strategy to be using it in retention as far as making them believe that they are losers if they actually do leave.

Well, if you think about the double-sided coin of this, so, you know, Apple has done it brilliantly in that having an iPhone, having an iPad, sort of prior to that having a Mac, on one side of that coin, that makes you, that makes you the cool kid. On the other side of that coin, Not having it makes you the very uncool kid. And increasingly, they were able to convey an idea that if you were walking around with another brand doohickey or no doohickey at all, you were some sort of you know, subhuman creature to be pitied. And of course, that makes the ones who have it all the more receptive to not just keeping it, but in their case, as they obsolete one and introduce another, hurrying to get the next new one. And there is that double-sided coin aspect to almost every product or every allegiance.

Also, just sort of end this topic and on this comment about this, because I believe in every private client that I work with, and Dan, I would think that this might be true with you as well, so you can let me know. On any long-term relationship that I have with somebody, we eventually address this point about Usually they come in on the door of how do I get more new customers, but eventually we move over to, well, now that we got them, how do we monetize them better and how do we also keep them longer, which usually is one and the same. So again, it's a very important— I can't encourage people enough to be thinking in terms of of thinking about keeping customers and not just about getting new customers.

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