In a small organisation, attracting new customers is going to be essential for keeping your company operating effectively. However, just as important as attracting new business is making sure your existing customers keep making purchases.
While this might be overlooked by many small-business owners, the benefits that come from retaining customers is immense - especially as they require less maintenance and will make larger purchases as they stay with you.
This was demonstrated by a study from Harvard University, which found that even a 5 per cent reduction in customer turnover can raise profits between 25 and 95 per cent.
So how can companies increase their return sales from previous customers? Here are three tips:
1) Understand your best customers
Some of your clients are going to be more valuable than others - no matter which industry you work in. Any good retention strategy will therefore need to focus firstly on these highly valuable customers and find creative ways to reach a greater number of individuals through this process.
2) Train staff
Training all of your staff in how to talk to clients is essential if businesses want to retain their best customers. For small businesses that don't have dedicated customer service staff, it is likely that many of your employees who come into contact with clients will not have previous experience in this setting.
With many valuable customers leaving a business because of poor customer service, training all staff who interact with your customers is going to be essential.
3) Follow up after a sale
Sometimes you can't just hope that a customer returns to your business after making a purchase - you have to actively cement this relationship by following up with them. While many small businesses may find this difficult, especially considering how much time they put into reaching people in the first place, it can also be a useful way to ensure people are making new purchases.
If you'd like to learn how Earlypay's Invoice Finance & Equipment Finance can help you boost your working capital to fund growth or keep on top of day-to-day operations of your business, contact Earlypay's helpful team today on 1300 760 205, visit our sign-up form or contact [email protected].