Businesses survive in this modern era only on the spending patterns of loyal customers and nothing more.
This year, harnessing efforts for sustainable growth and profitability will only come on the back of a considerable key preposition that must be carefully executed to achieve the business agenda of the enterprise.
Invariably, a lot more businesses may make one-time or one-off sales to clients due to the fact that the characteristics of their products may not make it likely for their customers to want or demand the product again in the near future.
Nonetheless, some other businesses may sell products and services to clients for whom the likelihood persists to have such regular customers who can be relied on for regular sales and, therefore, can become a good source or avenue for sales and income.
It is thus necessary that management and its sales team build a good rapport, as well as a pleasant and considerable relationship, with each customer, especially the business buyers, and ensure that the customers of such products are retained so as to profit from the market and for survival.
No complacency
Once such customers are available, management must do its best to keep them. Indeed, that necessitates efforts at making it clear to them that they are the most important component of the enterprise and that the entity will do all that it can, now and in the near future, to meet their needs and wants.
Therefore, if sales persons become contented and take it for granted that clients will patronise the enterprise’s products and/or services, sales made to customers who at a particular point in time or the other bought frequently, could slowly be lost.
For instance, the self-satisfied salesperson might just call customers on the phone for quotations and orders, rather than making unvarying visits to find out what quantities in stocks have customers.
This same visit could afford the sales force opportunity to engage clients for feedback and trends on the market. Failure to do this could competitors the opportunity to grapple for customers of the enterprise.
Precisely, the preservation of existing customers is the most significant ingredient in the sales strategy of a business and that no specific amount of feet-dragging should be entertained in this direction. Without the customer, there will be no business.
In 2015, this should be part of management’s plan to hold on to the regular customers, while braving the storm to entice others to their fold since this is the sure way to safeguarding owners’ wealth and business survival.
Consider this scenario. If an enterprise were to have 500 customers and sells at GH¢100, the gross revenue would come to GH¢50,000. If for any reason, loyal customers drop to 300 but the firm still sells at GH¢100, revenue would drop automatically to GH¢30,000.
However, if the customer base is to rise from the initial 500 to 800 and the enterprise still sells at GH¢100, then definitely, the company will now rake in higher revenue of GH¢80,000; far more than the initial gross revenue, and realise a net growth of about 60 per cent in revenue. This is a sure rise that could be seen in expansions, diversification and in sustained growth for all time to come.
But this would not come easily unless some customer retention techniques are significantly implemented in line with the policy framework detailed out in the enterprise’s mission statement.
Well, to be able to maintain and achieve that, let us check out some few tips as to how to go by in this year.
Exceed customer expectations
Customers are always happy to have their needs and demands met. Going the extra mile would be a plus for you if you take your time to ask them what other services could come in to compliment what has already been offered.
If delivery services could come in after purchases have been made and if free after sales services could be part of the package sold out, then this would be more than an incentive to customers who will always keep coming to you for more.
Know that such customers definitely do word of mouth adverts for you through their friends and family, and that is the beginning of the growth of your business.
Be abreast of the time
Innovations and technology keep on changing an so tailor your business to suit trends.
Find out what matters most to your customers and supply to their taste. New and quicker devices, equipment and machines keep on changing in almost every business environment; so stay focused and keep on doing what is important to retain your customers for the profits so yearned for.
Don’t let go your brand
Having carved your product out there, consistently maintain the pace that brings you into touch with your customers and make sure to live by the standard you are made of.
That definitely will set you apart from your peers and rivals which will be by maintaining your market share, which is your customer base.
It is really costly bringing in new customers on board than maintaining old ones. So do not lose your guard. The brand you have created definitely will ensure your growth and profitability.
Surprise at times
By wanting to maintain loyal customers, go freebies sometimes. Offer rewards for loyalists and make discounts available.
Again, carefully extend credit-purchase terms to selected customers and clients. This will make your customers love you and stay to do business with you.
Moreso, being personal and sieving through their data, remember their birthdays and send them birthday cards or call them on the telephone to wish them the best.
They really do not expect all these and, therefore, would be surprised and grateful to you at all cost. The bond this will create will translate into the business’s success.
Conclusion
Retaining customers come with benefits in stabilisation in revenue base and in increases in profit as well.
The end result on the whole will be a growing business that should leap beyond its bounds for both shareholders and stakeholders in 2015.
Happy New Year. GB
