Long-Term Relationships Are Worth More Than One-Time Deals
Every week, I receive the latest deals from satellite TV providers. They offer incredible “introductory” rates for switching to their service. While these deals are likely effective at customer recruitment, how do current customers feel? Should a new customer be rewarded with a better deal than a current one? Why don’t loyal customers get a deal?
The timing of these questions could not be more relevant for seed companies. More than 80 percent of the U.S. corn and soybean market is going through consolidation. Sales staffs are being merged and brands are being consolidated. Relationships between seed companies and customers are changing more now than in any other single year.
The market is churning and the opportunity to acquire new customers seems ripe for the taking.
However, in the excitement for new customers, it’s imperative that existing customer relationships aren’t ignored.
Your Current Customers are More Important Than New Ones
Farmers are receiving compelling offers every day to switch brands. Those that are likely to make a change will be those with the weakest ties to their current supplier. While you can’t prevent your customers from receiving the offers, you can make sure they see your company’s value over the others. By defending your current customers with as much effort as you put into recruiting new ones, you demonstrate how valuable you are to their farms.
Long-Term Relationships are Worth More Than One-Time Deals
Long-term relationships are the hardest for another company to break. Building these should be a core element of your expansion plans. Further, customers acquired with “one-time” or “new client” deals are the less likely to be loyal. They are more interested in the perks from changing brands than in a long-term relationship. Loyal relationships allow both parties to share information and invest in each other for mutual benefit.
Every current customer is a potential new customer to your competitors. Showing your customers their business is valued and that loyalty has benefits, encourages them to pass up on the latest great deal to switch brands. You’ll know you’re succeeding when every new offer from a competitor ends up in the same place you put your last satellite TV mailer … in the recycle bin.