Customers or clients are the lifeline of your business, whether it’s an online, offline, or combination of both. Research indicates that it costs five times as much to acquire a new customer as it does to keep a current one; therefore as a small business owner it is critical to implement strategies to retain customers and build relationships. Here are 3 tips that highlight why customer follow-up is essential for all businesses, but especially small business.
1. Builds Relationship: Imagine that you purchased an item from two different small businesses like a jewelry store or a small women’s or men’s clothing boutique? You spent quite a large amount but you were happy with your purchases and while shopping you were pleased with the level of service you were given in the store. A week later you received a personalized “Thank You” card from one of the businesses,that thanked you for your purchase and invited you to call with any questions of concerns. The business may also have included a promotional offer for when you return to the store within a specified time-frame. You heard nothing from the other business! Which of those two businesses are you likely to return to more quickly? Which are you more likely to talk about to your friends? The majority of us would prefer to revisit an establishment that followed-up with us and showed that they want to build a relationship with us.
2. Cost Effectiveness: Whether you are doing business online and selling your own products or as an affiliate you want to ensure that you have customers/clients who will do business with you repeatedly. The same is true for offline businesses. For every customer you lose it will take time and resources to replace just that one customer whereas that time could be spent enhancing existing customer relationships and providing an environment that encourages customer retention. In the meantime, the loss of a customer also means the loss of revenue for your business.
3. Reduces Customer Dissatisfaction: Honest communication is a requirement for building and maintaining relationships. In business this is no exception. “No one cares how much you know until they know how much you care” is a well-used quote but is so accurate. Unfortunately when customers have bad experience they are likely to share that with just about anyone who will listen, whereas many times the good experiences are shared with only a few. Would you not prefer that the person they share that dissatisfaction with is you, the business owner or entrepreneur? They will if you show by your surveys or programs for follow-up that their satisfaction with your product or service is important to you.
By making your customers and clients feel special, you are building strong, long-lasting relationships that result in continued success in your home-based or small business.
Please click on the ‘Comments’ button to share your thoughts on this topic. How do you build relationships with your customers or clients?