If there’s one thing we’ve learned from tracking, it’s this: it costs a fraction as much to bring a good customer back compared to what it costs to hunt down and convert a new customer, who may or may not ever come back.
        Many companies spend most of their marketing budgets advertising to the world. This is baffling to us. A certain amount of outside advertising is needed, but, dollar for dollar, marketing to your own customers should yield five to twenty times the return. Or more.
        At RESPONSE, we develop systems for identifying and ranking customers. Then we create and execute strategies to build their loyalty so they return and spend more often.

The importance of prospecting

        The art and science of filling the hopper with new customers is called prospecting. Since attrition is a fact of life, prospecting must be an ongoing effort.
        But let’s be smart about it. Rather than run off willy-nilly trying to “get your name out there” (as many agencies do), RESPONSE prefers to focus on prospects who resemble your best customers. They are, after all, more likely to become good, profitable customers themselves. Many media reach too broad an audience. It makes sense to advertise ubiquitous products like tires and soft drinks on TV. But why advertise water heaters in a medium that reaches old and new homes alike when you could learn how long the average heater lasts and mail to people in homes of that age?

Start now

        It only makes sense to keep and grow your best customers, and in finding more like them.
        Most companies don’t bother. They just run ads.
        It’s time to get serious about prospecting and loyalty — now. You will be able to grow your business faster using fewer dollars. Even better, you will do so under the radar. It could be years before your competitors figure out that you’re eating their lunch, much less how.