Retention is the New Aquisition

“Retention is the New Acquisition” - Dan Kennedy

Small Business owners can be focusing on the wrong type of marketing when it comes to growing their business - Retention is the New Acquisition!

Last night, I dove into one of my favourite marketing books by Dan Kennedy—he’s such a legend in the field! As I flipped through the pages, I was reminded of some great stories and analogies he shared. One that hit home was about targeting the right audience. It’s like trying to sell umbrellas on a hot, sunny day—just doesn’t make sense, right?

As I read, I came across a quote that struck me differently this time: “Retention is the new Acquisition.” It’s so simple, yet so powerful. Many small business owners get so caught up in attracting new customers that they forget about the ones they already have. Instead of focusing all their energy on bringing in new clients, they should be working on getting their existing customers to come back. It’s usually cheaper and easier to re-engage with someone already familiar with your business. Of course, not every business can count on repeat customers, but that’s where testimonials and referrals come in handy!

Having spent time in the restaurant industry, I know how easy it is for restaurant owners to overlook some straightforward ways to collect customer info for future marketing. So, I want to share five simple ways to gather that information, along with five reasons to keep talking to your customers about what you’re up to.

(I am going to use restaurants as an example here coming from the business and servicing many restaurants, you can see how this may apply to any brick-and-mortar or service business)

Five Ways to Gather Customer Information

1. Point of Sale, Reservation, or Online Ordering Systems

When customers place orders, it’s a perfect chance to collect data for future connections.

2. Loyalty Programs

Consider starting a loyalty or punch card system. It doesn’t need to be fancy; just give customers a way to sign up with their email or phone number.

3. Smart Wi-Fi Check-In Systems

You’ve probably seen these in hotels or airports. For under $100, you can set up a system that asks customers for their info to access Wi-Fi at your place.

4. Contests

Everyone loves a good contest! They’re fun and a great way to promote your business. Just make sure participants sign up with their email or phone number, even on social media.

5. Fish Bowl

Yep, I said it! This old-school method can still work wonders for gathering customer info and building a database.

These are just a few ways to start collecting customer information. The key takeaway is to get those emails and phone numbers so you can reach out later. Building a database is essential for long-term success, no matter what kind of business you run. Whether you’re a dentist, plumber, or restaurant owner, a solid database is crucial. I often hear restaurant owners say, “Tony, people are tired of emails,” or “Email is dead.” Trust me, emails still work—check out my article on the $300k email for proof! The real question is: what do you say? Here are five ideas for engaging with your customer database.

Five Things to Say to Your Customer Database

1. What’s New?

It might sound silly, but sharing updates can be super valuable. Keep it relevant to your audience and community. Sometimes it’s not just about you; it’s about your neighbors and local happenings too!

2. Limited Time Offers (LTOs)

LTOs are where it’s at! These create urgency. They don’t always have to be discounted; just offer something fun for a short time. Refresh these offers every month or so.

3. Contests

Run contests with awesome prizes! When someone wins, shout it from the rooftops. Contests keep your business in the conversation and encourage word-of-mouth.

4. Charity Events

Getting involved in charity events is fantastic. It feels good and helps your community see you in a positive light. You can even use your database to promote other charities, boosting goodwill for your business.

5. Specials

I believe restaurants shouldn’t rely too much on discounts, but a big special now and then can draw in crowds. Pair it with a charitable cause, and you’ll see people come through your doors.

As you can see, knowing how to gather customer info and what to say makes re-marketing a breeze. If you do this a few times each quarter, your business will keep growing.

Let me share a quick example. One of my clients ran a small burger shop and wanted to get more customers to opt into their database. We introduced a birthday program instead of a regular newsletter opt-in on their website. The previous year, they had just four newsletter sign-ups, but within three months, they racked up 104 birthday program sign-ups—a jaw-dropping 3,367% increase! All it took was changing the wording and offering a simple incentive. Now, when someone signs up, they get a cheerful birthday email and a free burger.

This welcome email makes people feel special and gets them talking about it and sharing it with their friends.

This gives you a clear picture of why having a database is so important. It’s all about getting customers to opt in and reminding them of your business. Life gets busy, and without a little nudge, your customers might forget just how much they love what you offer