KappaStone this past month finally reached a major milestone: a $0 marketing budget. What do I mean by this? We are receiving a sustainable level of new business exclusively from repeat customers, referrals and reputation. We are spending $0 on AdWords. We aren’t investing in trade journals. We’ve discontinued our subscriptions with freelance work sites. That may not seem huge on the surface, but consider this:
- Quoting work for repeat customers and referrals takes us, on average, less than half the time of new customer quotes. We don’t have to sell ourselves. We merely have to sell the job. Additionally, customers tend to be more forthcoming with information when they know you.
- Our closing rate for repeat customers and referrals is, on average, at least twice as high as other quotes. Customers will always opt for familiarity, even if the business relationship was less than perfect.
- We can focus on high-quality, interesting projects. Whenever dealing with a new customer, there’s a chance you won’t get along. Personalities can clash. They can have unrealistic expectations. They might not pay you on time or at all. Not only does your customer know you but you know and (hopefully) trust the customer.
All of this adds up to a huge reduction in costs to close a project and boosts overall margin and efficiency. Bottom line: invest the time and effort in building a quality client base up front.
Please share the love:
