We have all heard about the 80/20 rule, right? This statistic seems to show up in all aspects of life, including our customer base. It has been shown that some of the most successful businesses typically see 80 percent of their business come from 20 percent of their customers. But, for some reason, too many businesses neglect this loyal group.
Why? Maybe it is to pursue new customers. Maybe businesses take their customer base for granted. Maybe it happens when businesses get too busy with the daily grind of running a business that this important step gets pushed aside.
Whatever the reason, it can be a very costly mistake. I have heard statistics state it is three times harder to recruit a new customer than to retain a current one, which equals several more hours and several more dollars spent. Ask yourself what is your best referral source? Chances are it is past and current customers. If not, you may want to question your business’s take on customer service.
If you believe your customers are investments, what are you doing to maximize the returns? How are you building and strengthening your relationships with them? How do you keep them coming back and raving about your business to their friends and family? Stand out by providing excellent service to your customers. Putting some key relationship-building strategies in place will transform your company into more than just a business, but a valuable resource. Here are a few thoughts to get you started.
Communicate frequently
How often do you reach out to your customers and just what are you saying to them? It is extremely important to communicate consistently and vary the types of messages you send. Combine the ways you are communicating – using email, direct mail, phone contact and face-to-face communications. Sure, you can advertise a promotion every now and then, but also make sure you sprinkle in helpful newsletters and just a friendly “hello” on a more regular basis.
Offer Customer Rewards
Customer loyalty or reward programs work well for many types of businesses. Whenever possible, offer in-kind rewards that remind your customers of your company and its products or services.
Hold Special Events
Any event that allows you and your staff to interact with your best customers is a good bet for business, whether it is a golf outing, open house, or barbecue. Just choose the venue most appropriate for your unique customers and business.
Provide Great Customer Service
Go the extra distance and meet customer needs. Train your staff to do the same. Customers remember being treated well, but they also remember a bad service experience – and they are more likely to tell three times as many people about that bad experience. When you serve the customer better, there’s always a return on your investment.
