An important part of marketing is increasing market share and bringing new customers to the company. But at times, marketers are so focused on generating new customers that they forget to keep their current customers happy. Giving quality service and attention to customers is called customer relationship management (CRM).
There are a number of reasons why a marketing plan focused just on getting new customers may fail. First of all, it is very expensive, especially for a small company, to market and try to attract new customers. There is a high price to pay to find potential customers, as well as implement a marketing plan of new advertisements and promotions. Not that it is a bad idea to attract new customers, but it is much more cost-effective to put a lot of focus on pleasing the current customers. Secondly, if a company is too focused on attaining new customers, their existing customers may not return or not go to that company for all of their needs. For example, if a customer is extremely happy with their car insurance company, they may go to them for all of their insurance needs.
By giving excellent service and going the extra mile with customer relationship management, customers are more likely to return and tell their friends about the company. Word-of-mouth is a free marketing tool that may come with exceptional service to current customers. Not only is it free, but potential customers are more willing to listen and respond to recommendations from their friends than they are to a random ad that they might see. Go the extra mile with quality service to please your customers, and you could see the difference in returning customers and new referrals.