Understanding True Needs of Clients

Quite simply, putting your clients needs first is the only way to grow your business. Anyone can make a one time sale. It is also the most expensive way to grow your business. Draining all the profits that you gained from the previous sale to make the next one. It is always amazing to see how much effort goes into making new sales to the amount of effort that goes into encouraging clients to buy from you again and again and again. 67% of the buying community leave their supplier because of a level of perceived indifference – 67%!!! Lets put some numbers into this to demonstrate. If you have 100 customers, then 67 of them are going to go and buy from your competitor in the next year because they believe you do not care about them. If each sales costs £100 in advertising, administration and time to get a new customer, then £6,700 of profit is going to be used just to maintain the same number as last year. So to grow your business by 20% over the next year the total cost is £8,700 of profit. Based on some average numbers, this equates to over 50% of your Gross Profit is going to replace your existing database – not leaving a lot to your profit line!

Retaining customers is the single biggest thing that we need to do in the next year. Chasing new business and then almost handing it on a plate to your competitors because we don’t add value to our clients is a great way of helping them to grow their business. So what can you do??

Think about the difference people you deal with, sell your products or services to, buy from , and work with. Think about them one at a time. Then focus on what that person’s real need in dealing with you is. What results are they truly after? How have you impacted there quality of life in the past? What has it meant in terms of their business or personal success? How much more could you do to improve your impact on that result?

Once you have the  answers to these questions, you will be well on your way to retaining existing clients – leaving that extra profit in the business – whether is is £6,700 or £67,000  whichever way you want to look at it, it is more money in your business than you had last year. Always remember this “IF you always do the things that you have always done, then you will always get the results you have always got” – make the change, and see what different results come in

One Response

  1. Steve Grice says:

    Good Advice Kevin
    Every business needs to think about customer retention – most retail businesses now recognise this, but I think there is still a way to go with some B2B businesses, especially at the small SME end where the owner-manager is still ‘on the tools’. It is sometimes difficult for these types of businesses to bring their heads out of the daily work and look at the bigger picture of customer retention and increasing the average spend of each customer.
    Keep up the good work!