Seth Godin (the world’s most prolific/down to earth marketing guru) has a line:
“Share of wallet is easier, more profitable and ultimately more effective a measure than share of market”.
Which to me means that doing more with people who already appreciate you is better for you business long term. Makes sense. Most of us are familiar with the basic cost savings in selling, teaching, moving forward and maintaining projects with people we have an existing relationship with.
He also says:
“Your best customers are worth far more than your average customers”.
This makes me consider the ancillary benefits in a relationship with someone who values your offering. Beyond making it easier for you to serve them, they can be the ultimate source of better qualified leads. The people they send your way:
- will be coming via someone they trust, and should be therefore easier to start a relationship with
- will be coming for the right reasons, increasing the chances they’re a good fit for you
The article I’ll link you to in a second makes perhaps the most critical case for considering whether so-called daily deals site like Groupon are right for you. It, and the 100+ comments offer a solid education in thinking holistically about sales.
I found the article while searching for a quote I love about paying for things worth paying for:
When you buy something cheap and bad, the best you’re going to feel about it is when you buy it. When you buy something expensive and good, the worst you’re going to feel about it is when you buy it
Personally, I’ve leaned towards the sentiment shared by the author when he says:
The customers you attract only with a discount will disregard what you love about your own business, and won’t treat you with respect; both sides usually regret the transaction.
But the very first comment makes the point that, carefully considered, one could craft a deal that:
- brings in the right prospective customers/partners
- introduces them to new items
- sells things you can still make a margin on
I still have a lingering distaste in my gut for the practice, but either way, you can certainly get insight to better inform your decision from the following post.