The importance of a customer communications plan

What we often find in marketing is that achieving success boils down not necessarily to working harder, but working smarter. Effective planning is at the heart of this, and can make a world of difference to many areas of your business. As the famous quote by Antoine de Saint-Exupery goes, ‘A goal without a plan is just a wish.’

In both B2B and B2C marketing, effective customer communication is incredibly important. It can deepen engagement, increase share of wallet, boost your reputation and can also invite new, exciting ideas from the most honest source of feedback at your disposal – your customers. All in all, an effective customer communications plan plays a vital role in boosting loyalty and retention.

Acquisition vs. Retention

There’s no doubt that customer acquisition is hugely important. Particularly in small and medium businesses, it can often be the primary focus of daily marketing activity, with a huge amount of time and resource invested in lead generation and conversion. As a matter of fact, 63% of marketers believe that customer acquisition is their most important goal, as opposed to only 20% who felt that it was retention.

What the numbers tell us over and over again, however, is that retention and loyalty are every bit as important to the success of your business, if not more so:

• According to the White House Office of Consumer Affairs, it costs 6-7 times more to acquire a new customer than it does to retain an existing one.
• Marketing Metrics report that you have a 60-70% chance of selling to an existing customer, with only a 5-20% likelihood of making that sale to a new prospect.
• 61% of consumers take their business to a competitor when they end a business relationship.
• Globally, the average value of a lost customer is $243.
• According to Bain & Company, increasing customer retention rates by just 5% can increase profits by as much as 25-95%.

These stats really underscore the fact that retention deserves at least an equal focus to acquisition.

The impact of effective communications

Ongoing communication with existing customers is a fantastic way to keep them engaged with your brand. By keeping in touch with them via social media, e-mail campaigns etc. you can cultivate a loyal, engaged following – which means you’re in an optimal position when it’s time for them to re-purchase your product or renew their subscription.

An open dialog with your customers could also encourage them to directly raise any problems they may have with your product or service. This is a good thing, though, as it gives you a chance to resolve such difficulties before they escalate into issues that result in customers taking their business elsewhere.

This is particularly significant when you consider that the vast majority of disgruntled or disillusioned customers, if left unprompted, will generally keep their problems to themselves and take their business elsewhere. Studies suggest that for every customer who complains, another 26 (yes, that’s twenty six!) will remain silent. And, even more starkly, 91% of unhappy customers will not willingly do business with your organization again.

Building a customer communications plan

The best way to think of a customer communications plan is that it’s a road map which lays out your route to transmit your message to your audience. The more carefully you plan your route and the closer you stick to it, the better chance you give yourself of a) getting there and b) getting there quickly!

Ongoing communication with customers – beyond the conclusion of that first purchase – is an essential part of your overall service. By continuing to deliver ‘post-sale’ communications, you can significantly boost customer perception of your service. This is a huge deal – almost 73% of customers leave typical companies not because of anything to do with the product, but primarily because of poor quality of service. But, when companies are asked what they believe are the reasons why customers leave them, only around 21% of them cite poor service.

Why should you build and follow a communications ‘road map?’

• It makes ongoing communication a priority. You’ll be blocking out time for yourself and your team to make communications a focus, and making it an agreed part of your daily routine.
• Everybody knows their own particular roles and responsibilities – saving time and headaches all around.
• Consistent, ongoing communication builds a consistent brand which deepens engagement and loyalty.
• By reviewing your plan, you can gather critical insights about what works and what doesn’t, enabling you to facilitate incremental improvements.

Building your plan

There are several key things to think about when you’re making your communications plan:

• Evaluate and understand how your customers prefer to hear from you.
• Take an analytical look at your customer journey, both ongoing repeat customers and those who’ve left you for whatever reason, and try to identify patterns. What steps can be taken at which precise moments, for which customers, to maximize your results?
• Segment your customer base. This allows you to tailor your communications, making them as specific and relevant as possible – mass mail shots will only get you so far these days!
• What are you going to communicate? What are your core messages and what are the best ways to get them across?
• How much time and resource do you have at your disposal? What’s the best way to allocate the work between you and your team?
• What software tools might you be able to you use? Automation can play a key role, for example firing out emails in reaction to events or behavioral triggers.
• Remember to focus on deliverability, particularly with email campaigns. However great your messaging is, it counts for little if it isn’t hitting your recipient’s inbox!
• Your communications plan will play a key role in establishing a great brand which is rooted in consumer value and social responsibility. The transparency it will deliver will help you build a brand that people feel connected to, and proud to do business with.

Here at Wheelhouse Advisors, we pride ourselves on our expertise in creating valuable customer experiences. Whether you’re looking for more information about communication planning – or any other facet of your marketing strategy – we’d love to talk through your needs and offer you our industry-leading advice, so why not get in touch?

Continue reading here: Why it's essential to align your sales and marketing functions

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