It's a fact of life in the business world. Customer attrition will happen and we as small business owners have to accept that. But there are steps that can be taken to minimize the amount of customers you lose.
Recognizing Your Most Valuable Asset As I have mentioned in my previous small business marketing advice article, your existing customer base is your most valuable asset. That is a fact that should be recognized, appreciated and optimized for your greatest marketing ROI. Customers who have already purchased from you are more likely to purchase again, more likely to refer their friends and associates and the average transaction per sale is usually higher. Those are all important metrics that contribute significantly to the long-term success of any business.
Don't Be Afraid Of Customer Complaints I'm sure we have all had the experience where we had a problem with a product or service that we purchased from a particular company. Yet the outstanding way in which they handled the situation had no negative effect on the relationship and the net result made the relationship even stronger. That has happened several times with me. Many companies may seem good on the surface, but it is a real test of what they are made of when we have a customer service issue that needs to be resolved.
Complaints Can Be Opportunities If you promote yourself as a business with integrity and you stand behind the product or service you sell, here is your opportunity to shine. If you fail to stand behind your word, you have not only lost that customer but many others. People are far more likely and willing to share their bad experiences with a particular company than they are their good ones. That is important factor to keep in mind.
If you are experiencing several complaints, welcome this as an opportunity to fix some issues within your organization that you may not be aware of. This could be a problem with a particular employee, the quality of a vendor's product that you sell, the weakness of a particular company policy that you have or any number of other situations like that. Those types of things ultimately hurt your business and profitability, but they might not be apparent until customers bring it to your attention.
Barry Craft is the founder and CEO of Your Marketing Crew, LLC. Please visit YourMarketingCrew.com for more tips to inspire customer loyalty and to download your FREE copy of the "Small Business Survival Guide NOW" and discover what it takes to survive in this tough economy!