KEEPING CUSTOMERS LOYAL MADE EASY

Nick Roberts

Following on from last month's article, one way you can cut your costs is to hold onto your customers for longer. The longer a customer stays with you, the more that customer tends to be worth. Established customers buy more, take less of your time, are less price-sensitive and refer others. In some industries, reducing customer defections by as little as 5% can double profits. So how can you keep your customers coming back? 

• Know who your customers are by keeping an accurate and up-to-date database
  
• Don't just make special offers or offer discounts to new customers
  
• Keep in regular contact with your customers and use every excuse to contact them
  
• Build relationships in depth with all of the customer's team, whether it's the owner or the office junior
  
• Deal with any complaints quickly and honestly as a complaint is a great opportunity to show that you really do care
  
• Every now & then, offer them a little something extra, of low cost but of high perceived value
  
• Respond quickly to their queries, don't keep them waiting and make sure your premises are geared up for visitors not staff
  
• Introduce a loyalty scheme which rewards long-term customers - this could be discounts, preferential treatment or exclusive product or service opportunities
  
• Always follow-up a sale to make sure they are 110% happy with their purchase and know how to care for or use whatever they have bought

Your objective is to move your customers up what has been called the "Loyalty Ladder", from casual one-off buyers to frequent repeat-purchasing friends through to advocates whose mission in life is to refer you to others.

If you have any tax or business queries of any kind telephone 0800 ASK NICK, e-mail nick@abac.co.nz or use "Contact Us" on www.abac.co.nz. The information in this article is of a general nature and should not be relied upon as a substitute for specific advice.