Some businesses are so focused on winning new clients they often neglect to put any effort into retaining them ...
Winning new customers is often far more expensive than retaining existing ones. Winning a new contract may cost time in terms of developing a sales pitch and cash in terms of corporate entertainment in order to win over your target client.
Businesses constantly strive to grow their client base and to do this they must go out and put time and hard earned money into sales and advertising efforts. It's during these times that many business people take their eyes off satisfying their current customers and this can lead to customers leaving.
Customers of any business generally fall into three categories:
The goal of any business is to move the customers up along the customer chain. Dissatisfied customers move to the satisfied category, satisfied customers move to the loyal customer category and the business continues to look after the life-blood that is the loyal customer category.
Identifying and categorising each customer will take time and effort (hours analysing sales data). However, it will be worth the effort if it helps you retain some hard earned clients.
Customers buy from you because you give them a solution to a problem. For example, businesses buy new computers because they need to update and replace old, slow machines. The attractive solution to this problem – new computers at a fair price with some added benefit such as good backup and support services from the supplier. Regardless of the product or service that you offer, sell the benefits to your customers. Differentiate your firm and increase your chances of closing the sale by offering added benefits such as great service, a free add-on, etc.
There is no point in selling huge quantities of a product or service to your “biggest customer” if you are selling at a loss. You should focus your business development efforts on targeting new “high margin” customers and build your business into a more profitable entity. Equally, you should try to reduce the number of or even eradicate non-profitable customers from your business. You can do this by increasing the price of your products or services to a level where you make a healthy margin. If the customer stays with you then you have a positive result – they are now profitable. If they leave you for another supplier – no harm, since they were loss making for your business.
This should be viewed as an investment. It requires time, effort and budget. In order to become a market leader your business needs to demonstrate its expertise. You can do this by blogging, writing articles for business magazines and newspapers, producing newsletters, public speaking at seminars and events or just by meeting potential clients face to face. Essentially, you are giving a little something away to potential customers for free. Over time, by continuously demonstrating expertise and giving away some free advice, potential clients are more likely to buy from you.
If you'd like to know more about customer retention, then please do call me on 07521 790284 or LNK URL="https://blog.andromedaconsulting.co.uk/contact-me" Title="click here to ping over an email"} and let's see how I can help you.
If you're interested in coaching for your small business, do call me on 07521 790284 or leave a comment below and let's arrange a free consultation.