Customer Retention -
5 Ways to Keep your Customers
It is well known that it is cheaper to keep a customer than it is to gain a new one. But why are we so bad at customer retention?
Statistics in the UK indicate the cost of gaining a new customer is three or four times as much as retaining the existing ones.
My own experience is that it is even more costly. Yet so many businesses treat sales almost as a throw-away item.
For example are your sales guys paid mostly on commission for new business?
The following five tips are all common sense, but in the jungle of the business world, they are so often forgotten.
1. Get their Details Right
Amazingly, details get corrupted, with typos and wrong numbers. Perhaps more importantly, the key decision maker in the customer's organization may not be the contact in the details. Make sure your sales staff have put registered all the details, including the ways of working.
Do not rely on the sales guy's memory - he may be off sick, he may walk, and take all his contacts with him
2. Keep your Promises
If you said you would deliver on date X, then deliver on day X.
If there are problems, let the customer know as soon as you possibly can. Customers are much happier when they are involved, and they also have an opportunity to take action to protect their business. Never compromise on quality - your customer will prefer a small delay (notified in advance) to faulty goods.
3. Treat your Sales Guys as Human Beings!
If you look at job adverts - local, regional and national - there's always a large number of sales jobs. Often these are from the same companies, week after week.
Are they so successful that they need more and more sales people?
Not likely!
They are making the same mistake again and again, and still don't understand what they are doing wrong.
They offer high bonuses "to attract the best". But then they don't "look after" them. The salesman is given a target, brief training, and told to get out and bring in the sales.
Nothing about nourishing the customer, who is faced with a hard sale so the salesman can meet his target.
Nothing about involving the sales guy in the company ethos, and what the values are. The solution is simple - involve them like you do your other staff. Let them see how your products are made, and why. That way he'll feel involved, and more likely to seek out good quality business that is repeated. Look after him, and he will look after your customers.
4. Understand your Customer's Business
The more you understand what your customer does, the more you can see opportunities for more business. Even if you don't have a product that fits, you may be able to develop it - collaboration is a great way to grow business.
You can find out by indirect means - brochures, website, articles - or directly - just ask, and you'll probably get a guided tour!
5. Keep in Regular Contact
Even if you have nothing new to offer, contact or visit them to make sure everything is OK. That not only gives reassurance, it allows you to actively pursue Action 4 above.
The other neglected aspect of keeping in contact is networking - your customers can point to other new business.
Follow these 5 tips and you will see your business flourish.
