Here’s a staggering statistic: companies that prioritize the client experience generate 60 percent higher profits than their competitors that don’t. That means treating a client to a golf outing isn’t just a way to bond over bogeys—it ultimately impacts an organization’s bottom line. By thinking strategically about impressing clients, businesses of all sizes (yes, even startups) can dramatically improve their most important relationships while seeing a clear return on their investment.
I’ve had a hand in building several digital marketing agencies and helping big name brands like Nike and Mattel shape their brand strategy. However, having worked with a variety of different marketing channels, I’m now throwing my weight behind the value I’ve seen in events and face-to-face communication as the most effective ways to sell.
Successful businesses vary their client strategies depending on where clients and prospects are in the life cycle.
1. Acquisition
At the top of the funnel, events can be an effective way to get new prospective clients or customers in the door so they can experience your brand firsthand. Speaking of your brand, everything about the event should reflect it: the venue, the food and drink, the entertainment, and the experience. And who should be in the room? Bring your best business development people who know how to work the room and entertain guests.
Food and beverage events are ideal for client acquisition because the interactive element creates a natural icebreaker that’s conducive to networking and relationship building. Over the summer, Intel hosted an interactive demo reception for their best clients and partners at the INTX 2015 citywide conference in Chicago. Intel was able to bring potential customers face-to-face with business development people and happy clients, which can be just as effective in terms of acquisition.
2. Nurturing
Events are great for top-of-the-funnel awareness, but don’t forget to invite sales prospects you’ve met with previously to nurture those relationships face-to-face. Sporting events are perfect for nurturing existing relationships, especially if they take place outside of the stadium where guests are not confined to their seats. Nimble Storage, for example, loves to use the Chicago Cubs rooftop to stay in front of existing clients and hot prospects. Domo held a similar client event on the Kapow Terrace for the Manchester United vs. PSG soccer game in July.
Both events gave people a chance to mingle and have the undivided attention of their guests. In addition to the sales team, make sure team members who work on the front lines (for example, client account managers) can attend, since they should be able to effectively tell your company’s story and get your message across to prospective customers. Just make sure the event environment is one that allows for some degree of conversation, so you can develop the right relationships and move your prospects to a close.
3. Retention
Everyone knows it costs more to acquire new clients than to retain current ones—about five times more, in fact. To show your current clients how much you love them, decrease costs while increasing the likelihood of additional revenue. According to Marketing Metrics: The Definitive Guide to Measuring Marketing Performance, the probability of selling to an existing customer is significantly higher (60 to 70 percent) than the probability of selling to a new prospect (5 to 20 percent).
To increase customer retention, quite a few Fortune 500 companies love hosting retail events for their clients because it leaves guests with something tangible. When they put on the sunglasses or wear the jeans or running shoes, they remember where they got it from and drive more sales. Essentially, creating a positive experience for current clients is smart for both business relationships and financial goals. If you want them to ramp up their spend, put on an event that shows you care.
Photo credit: Lauren Kallen