5 Ways To Keep Customers Satisfied & Improve The Business Valuation

INTRODUCTION:

If you imagine that when you acquire a customer who you funnel into your 'bucket', it's pointless to keep spending money to attract new ones if you lose existing ones through a hole out the bottom. Not only is it expensive but it will usually mean that you have been damaging your own brand as people vote with their feet. Prospective buyers will also look at customer retention when working out your business valuation before they make an offer.

According to statistics, here are some insights about unhappy customers:

• for every one customer who complains there are usually 26 who stay silent;
• the average wronged customer will tell 8 to 16 people;
• 91% of unhappy customers will never buy from you again;
• it costs approximately $5 to get a new customer as opposed to $1 for keeping an existing one;
• each customer has a circle of influence of about 250 people.

As a small business accountant, most businesses want to grow so we tell them that it's important to keep track of number of leads, conversions, new customers obtained, average spend and number of times each year spending. This is known as the Growth Equation. Of course the new customers obtained component is net of any losses.

So what are some of the basics to fix that hole?

Figure1: Having a happy customer creates loyalty, referrals, more revenue and more profit! Photo courtesy bizjournals.com 

1. respond to Enquiries quickly

Not getting back to people is like asking someone to sit at a train station and wait for that train that was supposed to turn up about 30 minutes ago without knowing if and when it will turn up. Not knowing if somebody will get back to you creates stress. Getting back to an enquiry promptly will generally be much appreciated in today's world and we believe because this is rarely done there is a tremendous opportunity to win market share in most businesses whether you are a plumber, builder or small business accountant.

If you can't get back to somebody quickly, at the very least see if somebody else in the business can help them or let them know when you will be able to. The Tube in London recognised this many years ago and by letting people know how long the next train would be in was regarded as much better service due to this simple fact purely because it will help decrease some of that anxiety and their plans can be made around the new timetable.

2. say sorry if you mess up

Nobody likes to make a mistake but let's face it, it does happen. Blaming somebody or something else just won't cut it with clients so it's better to acknowledge what went wrong and fix it as soon as possible.

Not everyone will be happy with what's happened but you stand a much better chance of keeping them if you do this simple recommendation.

Figure 2: Having happy customers is like having one big happy family in your business!

3. give a little bit extra

The old saying of under promise and over deliver is still true to this day. Better to set expectations early and then not only achieve more but doing it sooner will keep many very happy.

Doing little things more will make clients feel appreciated and will go a long way to loyalty when the chips are down. It could be something such as a small business accountants Sydney free app that will help them in some way or maybe a dinner voucher for their birthday.

What are you doing extra in your business for your customers?

4. Personalise your service

Contacting customers regularly and asking them how they are going will also be greatly appreciated. Get you customer list out and sit down and have a system of contacting them at least monthly to see how they are going and if there is anything you can do to help them.

What you should find is that not only will you have happier customers but it could lead to more revenue and profit!

Figure 3: Happy customers usually means higher business valuations when you go to sell. Photo courtesy LinkedIn.

5. say thank you 

This is very basic but something that can slip through the cracks and is such a simple thing to do and costs absolutely nothing.

When was the last time you said 'thank you' to a customer for their business or when they actually paid you for your goods or services?

CONCLUSION:

Go back for the last 3 years and work out how many customers you have lost and why. Could you have saved some of them with some basic customer service or have you just accepted they have left without changing the way you do business?

In this day and age it's very expensive to win new clients but if you adopt some of the above tips, not only will you have a much better chance of keeping the ones you have but also win quite a few from those businesses who are ignoring the basics!