In this economy, when small-business owners ask me what to do to survive, I always advise, “Whatever you do, make sure you do whatever you can to keep your current customers.”
Customer retention is absolutely critical.
That’s why I’m embarrassed to admit that I just lost a major customer. And for the dumbest reason: We just failed to stay in touch with them regularly.
Now keep in mind that this is a customer — a good-size university — who loves our books. For years, they’ve sung our praises. On my list of satisfied customers, they were right there at the top of the list.
It wasn’t until we noticed — took way too long to notice — that we hadn’t been getting orders that I picked up the phone to find out what happened.
Another company (with an inferior product, I might add petulantly) had pursued them — “they really wanted our business,” my contact told me.
Can we get them back? Yes, possibly. But it’s going to take work. And we’ll have lost a lot of money at a time when every dollar counts. And it was completely unnecessary. Don’t let this happen to you!
That means you need a customer retention plan. First, remember it’s more expensive to acquire a customer than to retain a customer one. And your past customers are the ones who are most likely to be future purchasers. They’ve already shown they want and like your products or services and are willing to pay.
This economy makes customer retention strategies even more important because customer loyalty is weakened. Your customers are going over their budgets carefully; they’re looking for alternatives. And with the pace of technological change and more ways to communicate, they’re even more likely to be more exposed to your competitors.
Keep in mind that it doesn’t need to be costly, time-consuming or difficult. You just need a few simple steps and always make it a priority:
• Contact your top customers or clients regularly. Make a list of your top customers, at least 10-25. Call them each at least quarterly.
Take the best ones to lunch or dinner — even if that means you have to hop a plane.
• Keep your name in front of all your customers. Advertise regularly. Network regularly. Send e-mail newsletters regularly. The key is doing this regularly.
• Give your current customers good deals. We’re all used to come-on deals to attract new customers, but we then fail to offer similar discounts to current customers. Remember, your competitors are targeting your customers with deals.
• Surprise them! Do something special and unexpected for some of your best customers. Send them a small gift. Add something extra to their order.
• Keep track. Get a database, contact manager, digital address book. I’m always surprised by the number of businesses — especially small businesses — that do not have a good database of their past customers. Find a way to keep track of all your clients — past and present — so that you can easily and quickly contact them.
• Communicate, communicate, communicate. All of us, myself included, take our customers for granted. As a result, we get so focused on doing our work, that we don’t take enough time out to meet with, talk to, and more importantly, listen to, our customers.
Stay in touch. Ask them what they need and want. Be part of their lives and businesses.
What about me and the customer I’ve lost? I’m getting on a plane and going to see them. I’m going to offer them extra-special service to get them back in my fold. And I’m going to be doing a whole lot of other business travel and phone calls in the next few months. I’ve learned my lesson. After all, a customer is a terrible thing to waste.
Rhonda Abrams is the author of “Six-Week Start-Up” and “What Business Should I Start?”
