“The Fourth Way to Grow Your/Any Business?”

This is fourth in a series of four posts I’m going to share with you centred on the 4 Key Questions of Business Growth…

You’ll recall the first three key questions are:

How do you/we increase the number of Customers?
How do you/we increase the average order value?
How do you/we increase the average order frequency?

Well now we’re going to look at the final question:

How do you/we increase the retention of customers?

“Are Your Customers Slipping Silently Out the Back Door of Your Business?”

Client retention… or most importantly lack of it - is costing businesses worldwide millions in lost turnover and profits each and every year.

The worldwide market place is now bigger than ever - however as the market grows – so does the competition.

New companies moving into new markets!
Old companies moving into new markets!
New companies moving into old markets!

The competition is on the march!

Your customers and clients are constantly UNDER ATTACK from rival organisations attempting to steal them from your business.

In many businesses and organisations as fast as customers are persuaded in through the front door – they are silently slipping out the back.

Now you and I both know that we do need to bring in new customers.

· No matter how good our retention strategies!
· No matter how good we are at developing relationships!
· No matter how good our products and services!

We’re going to lose some customers/clients – FACT!

WHAT IF - through increased focus – through a well thought out Customer Retention Strategy and through effective implementation of that strategy - we could just reduce the attrition rate of your customer base by small percentage points?

This, coupled with effective front-end new business activity is how many successful businesses now attack the market – and by so doing achieve exponential growth instead of linear growth.

Think of it like this: Would you rather spend year after year bringing in new customers just to stand still or…

By focusing on a number of multiple strategies really drive your business to levels of growth that previously you’d only dreamed possible.

Why Retain Customers?

Pti were consulting with one of our regular clients recently.

The consultant led the client through 50 key ways to attract new customers to their business. The client was obviously delighted with the results - and could not wait to get started implementing the ideas - attracting new and exciting customers to their front door.

Until that is - the consultant took them on a very scary journey – he asked about the numbers of customers lost each year?

Using our clients’ data the consultant projected that over the next five years they would need to invest £3,790,000 to re-acquire the customers, (based on current data) they were losing each year.

Together they also calculated that it could cost them a further £10,000,000 in lost business of standard orders placed - not including extra sales of new products over the period – a very sobering thought.

I’m so passionate about Client Retention I’ve written a 59 page Special Report dedicated to this very subject. You can download your copy by going to www.pti-worldwide.com - however today let me share with you just 3 of the 17 Key Customer retention strategies detailed in the report;

1. Building Your ‘Ideal’ Profile of Client:

+ What does the ideal profile of customer look like for your business?
+ What is the demographic/psychographic profile? (Who buys/why do they buy?)
+ Are they transactional or relational?
+ What are the key factors and ingredients in the make up of your ‘Ideal’ profile customer?

Page 17 of the report explains in depth how to build your ideal profile client.

2. ‘Satisfied’ or ‘Very Satisfied’

Customers who rate the service from a supplier as "satisfactory" have a retention rate of 65%.

However - those customers who rate the service they receive as "Very Satisfactory" have a loyalty rate of 95%.

Yes – a 50% uplift in retention or loyalty - from 65% to 95% - just by an increase in perception of service - from ‘satisfied’ - to ‘very satisfied’.

Where would you say your customers would rate their satisfaction on your business satisfaction meter? Which of these strategies are you going to implement first to move the needle on your satisfaction meter to the ‘Very Satisfied’ end? (More details on page 24 of the Special Report).

3. Speed Stuns!

You’ve heard the expression under promise and over deliver. Well here’s another take:

“Over promise and… over over deliver!”

+ Your customer places up with that urgent order – you guarantee delivery for the day after tomorrow – however it arrives next morning – Speed Stuns!
+ The proposal the client needs by the end of the week – it’s on their email within 24 hours – Speed Stuns!
+ You go to an important meeting – next morning the customer receives a hand written card from you thanking them for the meeting – Speed Stuns!

I know you have the point. What a great expression and what a brilliantly simple strategy to build loyalty. I’m sure you’re already thinking of ways to use this in your business.

Summary…

So there we have it – the final question of the 4 Key Questions of Business Growth. This series of four ezines contains so many powerful ideas to accelerate the growth of your business. I urge you to block out some quality time to personalise and apply the ideas – after all action is the Key to success.

The post has been made by Royston Guest from Pti International.