Value of Retaining Clients —Sherburne

A full 63 percent of respondents indicated spending was decreased in those areas, and 40 percent reported decreased spend on direct mail. Online, outdoor, radio and TV have not seen those types of cuts, with less than 20 percent of respondents reporting cuts in those areas.

Meanwhile, 73 percent of respondents plan to increase spending in online media. This is more than likely a shift of decreasing dollars rather than an increase in budget.

And 54 percent of respondents report currently using social media as part of their marketing strategies. The majority of those using social media (60 percent) report using it to establish thought leadership.

So, where does this leave us? First, as an industry, we need to do a much better job of communicating the value of print in the new media mix to hang on to a reasonable share of the marketing budgets.

But, it is also critical for us to be a player in alternative media, offering a range of communications options, including print. Many printers-turned-marketing-services providers have told to me that not only is alternative media (and the services that go with it) more profitable, but it tends to draw an increase in print volume with it.

So, clearly, this is one area we should be focusing on in terms of customer retention, and a great new topic of conversation for those sales and/or executive visits to important customers.

Second, we should be paying close attention to our customer retention rate, even to the point of diverting sales power from acquisition to retention, possibly even compensating sales reps more for growth within existing accounts than for bringing in a new account that may only give you one job.

In addition, customer purchasing patterns should be analyzed closely. Key metrics include repeat business, willingness to act as a reference to others within or outside of their organization, the extent to which they are purchasing ancillary services, including Web/e-mail related services, and the frequency of purchases.

Shifts the wrong way in any of these metrics can indicate an emerging problem and should be addressed immediately to determine the reason and what can be done to reverse the trend.

Finally, you should ensure that you offer the best possible customer experience, from the time the buyer first conceives of a project or contacts you for a quote, through the quoting and ordering process, production, delivery, invoicing and followup to ensure the project met or exceeded expectations.

Full Web Integration

Do customers have access to information via the Web relative to the status of their order? Can they access billing and other information online? Are you meeting their requirements in the best way possible with your ordering and invoicing processes? Many companies are now seeking integration between Web storefronts and their own back-end systems to remove manual labor at their end, as well.

None of this is rocket science, but all of it is essential for a focus on customer retention. It also assumes that you are building the proper infrastructure in order to meet these changing client needs, and can be innovative in finding ways for your customers to continue to use print in new and different ways.

This year is likely to be a make or break one for many companies in our industry. Hopefully, these suggestions will be helpful as you work towards making 2010 a great business year. PI

—Cary Sherburne

About the Author
Cary Sherburne is a well-known author, journalist and marketing consultant whose practice is focused on marketing communications strategies for the printing and publishing industries. She was recognized as a 2009 Woman of Distinction and was awarded the 2009 Thomas McMillan Award for excellence in journalism. Sherburne has written six books, including "Digital Paths to Profit," published by NAPL; and, most recently, "No-Nonsense Innovation: Practical Strategies for Success," written with Bill Lowe, the Father of the IBM PC and available on Amazon. She can be reached at Cary@SherburneAssociates.com.

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