For Client Retention, Video Marketing is a Massive Asset

In the world of online marketing, the value of client retention (or working with repeat clients) has grown exponentially. The reason for this is simple: retaining existing clients offer the potential for a much better  ROI than focusing on getting new clients. With this in mind, we would like to explain how video marketing can help you re-engage with old clients more effectively than other methods.

Why do we say this?

According to the latest research, it can be up to seven times more expensive to acquire a new client than it is to keep or re-engage with an existing or past client. As we’ve said before (and will probably say many times again), 80% of your future profits will most likely come from 20% of your existing customers. These are just a couple of the reasons that creating customer loyalty is critical to the ongoing growth of your design or furnishings business.

Considering those stats, doesn’t it makes sense for you to make the effort to keep the loyalty fires stoked? And, by incorporating videos into your messaging, it’s not as hard as you might think.

Re-engage with Past Clients Using the Power of Video

When you think of past clients or old prospects as business assets that have become dormant, their potential value becomes clear. The reason you should think of them as assets is that they’ve already proven their value:

• They know who you are and they already like you.

• They understand what you have to offer and they know you provide value.

• They have paid you before – which increases the likelihood they will pay you again!

If these aren’t enough reasons to re-engage with past clients, here are a few more:

• More than 90% of marketers are using video content in their marketing campaigns.

• The word “video” in an email subject line increases open rates by 19%.

• The word “video” in an email subject line increases click-through rates by 65% and reduces the number of email unsubscribers by 26%.

When considered separately, these are very significant reasons for using video marketing to re-engage past clients. When you combine them, the idea that you should begin to use video messaging as part of your client retention strategy becomes truly compelling.

Nurturing repeat business is a vital step in the long-term success of any business yet, those of us who generate a substantial portion of our business online often struggle with retaining clients because of the inherently impersonal nature of the internet. A simple “how you doing”, “what’s new”, “here’s the latest” video campaign that is designed to nurture and reengage past clients may be the perfect tool for doing so – keeping your business growing and thriving long into the future.

Looking for more about the value of client retention, help with your online marketing strategy, or email marketing ideas? Get in touch with TD Fall today.

Relationships with Past Design Clients – The Key to Repeat Business

In a recent perusal of the blog at BusinessOfHome.com, we were intrigued by a post on how designers generate repeat business. In it, author Haley Chouinard asked a dozen designers how they go about maintaining relationships with past design clients to foster new or additional business.

We’re happy to recommend taking the time to read the ideas shared by the designers in the article but, what caught our eye, in particular, was this comment: “Whether I randomly see a home decor item they may like or do an activity that reminds me of a certain client, I will share it with them afterward.” (Tiffany Brown, Brown Builders Design, Charlotte, NC)

“Why?” you may ask. “Because,” we would answer, “doing this would not only be an excellent way to reengage with a past client, it could also be the perfect lead-in to meeting with them and proposing another project.”

“How so?” You may further ask. “Thusly,” we would likely respond…

Reengage Past Clients for Repeat Business

First though, a quick reminder about the value of repeat clients over new ones, which we shared in this post back in March:

Based on the latest research, designers and dealers will do themselves a favor if they can devise ways to retain or reengage existing and past clients. Why?

• New clients are 7x more expensive to acquire than keeping or reengaging existing or past clients.

• The probability of converting an existing customer is between 60% &70%.

• The probability of converting a new client is just 5% to 20%.

• Repeat clients spend an average of 33% more than new clients.

• Repeat clients are 60% to 70% more likely to buy an up-sell.

These are just a few of the reasons that re-engaging and working to establish customer loyalty is critical to the growth of your business.

Relationships, Relationships, Relationships

And so, back to thusly…

Obviously, and by definition, there is already a relationship between you and previous clients. Following the advice offered by Ms. Brown presents a great opportunity for re-engagement on a highly individual basis.

By sending them a quick, “I saw this and instantly thought of you and (that room/space in your home)” note, you tell them you haven't forgotten them. Not only that, you’re still actively thinking of them and their ongoing design needs. And, as she also said, “This thoughtful reminder that someone is thinking of you is [a] feeling we all hope for in our daily lives.”

Imagine the different responses they might have to your note:

·         A quick “Thanks for thinking of me” note, then silence.

·         That same note with a request like, “Can you tell me more?”

·         Or, and this is what you are most hoping for, a note that says, “Thanks so much for thinking of me. Can we get together and talk about where you think it would fit best in my home?” (Cha-ching!)

That last one could be the goose that’s getting ready to lay a golden egg – right on your doorstep.

Take the Reins and Ride into a New Project

Let's take it a step further, shall we? Imagine you were at Market or in a showroom recently and saw the perfect sofa for a previous client’s living room. You know it’s perfect because not long ago you redesigned their kitchen for them and wondered how you might inspire them to renovate a room that made you think, “Ew!”.

Since you are a true professional, when you meet to discuss how the sofa would be a perfect fit for their formal living room, you are fully prepared with a plan to improve that space. You might also say something like, “This is perfect for a formal setting, right in front of that beautiful picture window. Or, better yet, two of them facing each other before that gorgeous fireplace!”

They may respond with something like, “Oh, I was thinking maybe the family room”.

“Oh my,” you would respond. “This piece is much more appropriate in a formal setting like your living room. But, hey, I think I remember the perfect choice for your family room, too! Let me just see if I can find it in my notes. Ah, here it is. What do you think?” (We knew you’d have it ready for them!)

Now, suddenly, you're not simply trying to sell them a sofa. You’re talking about renovating two rooms for them, all because you're such a thoughtful human being and a wonderful, professional interior designer! (Go ahead, pat yourself on the back!)

This is the definition of upselling a client. And, because they’re a repeat client, they already know and trust you. Plus, you’ve displayed your concern for them by letting them know you were thinking of them even outside the setting of their home.

And, don’t forget, you are 60% to 70% more likely to make a deal with them than with an unknown prospect. From there, closing a new deal with your repeat client should be easy!

When Opportunity Knocks, You Caused It!

Don’t forget to check out the article we mentioned earlier, either. There are some pretty cool tips there about how to maintain and grow relationships with past design clients.

If any of the ideas we offered above resonate with you, please let us know. Also, if you have more questions about how you can generate new business with repeat clients, Ted remains available to work with you on an individual basis, consulting on how you might best engage or reengage with your design and furnishings clients. Just… Get in touch with TD Fall today.

Whether to Engage or Reengage Clients, that is the Question

On the one hand, there are innumerable online marketing experts who will tell you that you must engage prospects to convert them into clients. On the other, you have a significant number of experts claiming that you should reengage clients from the past because the return on investment (ROI) is greater from repeat business.

Both are viable approaches to marketing and it makes sense to pay attention to both; client acquisition and retention. But, reengaging a previous interior design client can be problematic. After all, a remodeling project is not exactly a once-a-week purchase for a homeowner. The same can be true for furnishing retailers; a high-end living or dining room set can last a lifetime. How often will your customers come back for more?

Yet, based on the latest research, designers and dealers will do themselves a favor if they can devise ways to retain or reengage existing and past clients. Why?

• New clients are 7x more expensive to acquire than keeping or reengaging existing or past clients.

• Probability of converting an existing customer is between 60% & 70%.

• Probability of converting a new client is just 5% to 20%.

• Repeat clients spend an average of 33% more than new clients.

• Repeat clients are 60% to 70% more likely to buy an up-sell.

Finally, a general rule of thumb in business is that 80% of your future profits are most likely to come from 20% of your existing customers. These are just a few of the reasons that re-engaging and working to establish customer loyalty is critical to the growth of your business.

Re-engaging Past Design & Furnishing Clients

As mentioned above, people who invest in luxury furnishings expect them to last for generations. In addition, when an interior designer is contracted to complete a home improvement project, their clients don’t expect to need them again in a few weeks’ time. These are serious challenges for both when trying to reengage with clients.

The key to success here is to first, know your client base; and second, you must get to know individual clients as intimately as possible. Homes have more than one room to reimagine or furnish and, while it may seem obvious in the abstract, offering a “next steps” approach can offer a significant ROI.

For example, once you’ve finished a kitchen makeover, what’s to prevent you from asking your design client how they feel about their dining room, living room, or master suite?

Or, if you deal in luxury furniture, why should you avoid making a pitch to upgrade other rooms in your customer’s home once you’ve delivered that beautiful new bedroom set? How many more rooms might you furnish in the average home – half-a-dozen?

And don’t forget (please don’t forget), there are tens of thousands of people who've been forced to work from home in the past year or so. How many of your previous clients have you been in touch with to see if they need help putting together a comfortable, workable home office?

Your answer should be – all of them!

How Can We Help?

Of course, there is no way we could possibly outline every circumstance in which you could reengage with past clients. That’s not the point of this post. What we are trying to do is encourage you to think about how you might take a past relationship to new levels, while also not forgetting to engage with new prospects.

It's a tough job, but someone has to do it. And, that someone is usually going to be you!

Ted remains available to work with you on an individual basis, consulting on how you might best engage or reengage with your design and furnishings clients.

With more than 25 years of experience in the luxury furnishings and interior design industries, he has pretty much seen it all. So, if you're ready to work with a professional consultant who can help you become one of those agile entrepreneurs our changing world demands, feel free to… Get in touch with TD Fall today.