Which is Better: New or Repeat Business? (Part 2 of 2)
by: Paul Lemberg
Recently we asked which was more important: new customer growth or repeat business?
The answer depends on your business goals. If you want fast-paced quantum growth, you should concentrate energy on adding new customers. But if your goals are more incremental - if you envision continual year over year growth in the 10 to 20 percent range - booking repeat customer revenue is far easier than adding new customers.
(Of course, don't lose sight of new customer acquisition; doing so entirely would doom the future of your business.)
While it is not easy to double your existing customers spending year after year, it is easy enough to 1) keep them happy and loyal, and 2) develop additional products and services for them, which they will buy if they are happy and loyal.
How can you build loyalty and garner repeat business? With two customer words: service and communication.
Enhance the customer's service experience
Customer service is all about fixing customer problems. What kinds of problems?
Fixing things which are broken, or that don't work as expected.
Facilitating deliveries, exchanges and returns.
Resolving billing and payment issues.
Fulfilling the exceptional need or the odd request.
Providing technical advice and user guidance.
This last is very important because many products are so complicated they can't really work without solid service.
And that doesn't go just for technical products. It applies to self-assembled furniture - the kind you can't seem to put together based on cryptic instructions. Or home repair - consider those valuable retired plumbers in orange aprons at Home Depot. Or what about your weekend hotel stay, transformed by that special concierge into something you remember the rest of your life.
In each case customer service is a critical part of the product. And in every case, it's the part that makes customers feel great about doing business with you.
Customer Service = Repeat Business
McDonalds believes that once you successfully address a customer's complaint, that customer is several times more likely to come back and buy more Big Macs. McDonalds store managers search for problems; they long for problems; they pray for problems.
Train your people to listen closely for problems and look for things that are out of whack. Establish customer service protocols to insure those issues are dealt with quickly and completely.
Plus, your company gets a bonus for good listening: creatively solved complaints are often the genesis of new products and services. Build a system which rewards both customers and employees for those new business ideas.
Too many companies see customer service as an expense. In reality it is the most cost-effective customer retention program you could possibly have. So hire reps who want to help people and train them to spot opportunities. Use technology to make it easier to find solutions. Lavish money on it. Gather knowledge and wisdom in databases and make it available to everyone in the service chain.
Customer Communications
(continued...)
Which is Better: New or Repeat Business? (Part 2 of 2)
Page 2
About The Author
Paul Lemberg is the president of Quantum Growth Coaching, the world's only fully systemized business coaching program guaranteed to help entrepreneurs rapidly create More Profits and More Life(tm). To get your copy of our free special report with detailed steps on how to grow your business at least 40% faster, even when you aren’t sure what to do next, go to www.paullemberg.com.
paul@lemberg.com
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