These are tough times for any business and particularly small companies. Attracting and retaining your clients and customers is more important now than ever before, but for small businesses that have to cut operating costs, spending heavily on attracting new customers is just not feasible.
We can all appreciate that it's easier and less costly to retain existing clients than to constantly develop new relationships, but sometimes that's easier said than done. However, as recent economic problems have taken hold, competition for customers has increased. The businesses that survive will be those that create and retain a loyal customer base.
An effective approach
In a recession, when the chips are down and prices are being slashed across the board to attract business, the only defining characteristic left is the quality of a company's customer service. Holding on to existing clients, while attracting those defecting from less successful organisations, is the best way to overcome competition and maintain profitability in a turbulent economic climate.
Good customer service doesn't cost anything, and keeping hold of your existing customers is far cheaper than seeking new business. A reputation for delivering good customer service will also set you apart from the competition and make your business more sustainable.
Small business, big advantage
The public backlash against the banks and the perceived greed of major corporate companies has been as much fuelled by their conduct as by the perceived facelessness of their operations. This is where SMEs are at an advantage. Whilst they may not have the marketing budgets that big businesses can employ to attract new clients, by their very nature SMEs are able to provide better customer service, retaining the business they have and attracting those people looking to work with and buy from an organisation they feel they can trust.
Simple steps toward good customer service
Good customer service doesn't cost the earth and some small simple changes can add up to make a big difference. Here are some ways to help make your customer service the best it can be:
1. The more knowledge that can be gained on what customers are looking for and the areas where they have experienced dissatisfaction in the past, the better equipped a business will be to fulfil their needs.
2. Spend the time to speak to customers personally; listen and respond to their comments and think creatively about where value can be added in the most cost effective manner.
3. Regular customer surveys are an invaluable exercise as they offer a true insight into your customers opinions, likes, dislikes and what they would like to see done differently, for example. When customers respond to surveys, if they do so anonymously they are more likely to give truly honest answers.
4. Placing the customer first makes them feel valued and wanted and less likely to flirt with competitors.
5. Offer a better service than anyone else - a great service or product is one of the best ways to keep customers happy and attract new business.
6. Ensure that your products and services are good value. Even if your products or services are the best around, if they are overpriced customers will look elsewhere.
7. Make a commitment to improve social and environmental credentials. Ethical consumerism is worth £35bn to the UK economy and the figure is rising. Consumers are making more ethical purchases so make sure you can tap into this growing market by offering green and ethical alternatives.
8. Honesty is always the best policy - don't make any promises you can't keep and be as transparent as possible. Customer loyalty is built on trust.
9. Regular contact with your client or customer will make them feel valued and show that you are taking an active interest in what they do.
10. Reward loyalty - this doesn't have to be anything overly generous or showy but demonstrating to your customers that you appreciate their businesses is a great way to say thank you and to cement an ongoing relationship.
For more information visit www.greenrocketgroup.com
