When you think of business growth, most people immediately focus on growth through the acquisition of new customers. This is a good way of growing any business and every business needs to focus on how to continuously gain new customers. But imagine if in addition to consistently getting new customers, you never lost a customer? Imagine if your old clients were still current?
I know that sounds like a tall order so lets be more realistic and imagine that you were able to increase your customer retention by 10%, 20% or even 50%. What would your business look like then? What if you managed to get half your old customers to make a new purchase?
When you work to keep your current customers, you begin to get the true value of each customer that you’ve worked so hard to attract.
Most professional’s act like the banks and financial institutions we so love to hate at the moment. We offer our new customers better deals than our existing customers. The banks can afford to do this because they have a huge customer base and the barriers to switching banks can be quite prohibitive. Their customers (myself included) know they can get better service elsewhere but cannot be bothered to go through the hustle of switching. Unfortunately, the cost of switching most professional service providers is not as prohibitive. So failing to take care of your current customers can be fatal.
Lets take one of my customers, who we will call Lisa. Lisa dumped her current coach and switched to me within a week of making up her mind. It was so easy and quick. Although, I was happy with her decision and impressed by her decisive action, it also made me realise how quickly customers could move on if we didn’t continuously deliver value and exceed their expectations.
Lisa was unhappy with her current coach because, he didn’t seem as keen as when she first started working with him. He didn’t return her calls quickly enough and she felt that she initiated most of their communication. That sounds extreme but that may just have been her perception of the situation.
So, if you are really serious about growing your business, then:
1- You need to work hard to keep your current customers happy by acting with speed and meeting them at their point of need.
2- You need to reactivate old clients by getting back in touch and offering them something truly irresistible.
The goal is to be fully engaged with your customers. Communicate regularly with them, seek them out and be their partners. Make sure they get the results they signed up for. Be transparent and authentic so that they build enough trust to bring you more business and referrals.
This is how you can leverage your time and to grow your business in a cost effective way.
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