When you’re thinking about how to best to do marketing and promotion, here are three guidelines for using your money and energy most effectively:
1) It is always easiest to sell more to those who are already satisfied customers buying your product or service;
2) You are more likely to sell to new customers who are much like the customers you already have, or have been referred to you by current customers; and
3) It is hardest to sell to new people about whom you have little information.
Item 1 assumes that you do everything to keep your customers happy so they’ll want to keep coming back to you.
Item 2 is based on the idea that the kinds of people who really appreciate you, what you sell, and how you do business are likely to want to do business with you, once they know who you are….and especially if they have heard good things about your from their friends.
Item 3 means it can be very expensive to simply place an advertisement without knowing details about the audience that will see the advertisement.
The most cost effective way to promote your business is to continue to be sure your current customers are satisfied customers and let them know how much you appreciate their business and having them refer you to others.
Remember….a satisfied customer may tell several people; a dissatisfied customer tells everyone they encounter.