• 66°

Dipple column: Keep what you have, grow what you've got

What I have found in the real world of business is that most underestimate the need to satisfy and retain customers. Most businesses, especially small ones, put too much money, time and effort into chasing new customers/prospects and far too little resources trying to keep their current ones.
We all know you can’t fill up a bucket if you don’t plug the leaks. Real profits and stable revenue streams come from long-term relationships and repeat business with your current loyal, profitable customers. Some experts declare that 80 percent of a company’s future growth comes from existing clients, if served and cultivated properly. As such, customer satisfaction and retention should be your top priority.
The purpose of your business is to attract and retain customers. You can’t grow and remain in business without keeping the customers you currently have.
First, you must measure your current attrition rate (loss of customers) and set a goal to dramatically reduce this rate. For example, if you lose 15 percent of your customers every year, a realistic goal would be to reduce this to less than 4 percent. It is easier and nearly eight times cheaper to serve and retain clients/customers than to pursue new ones.
Once you have plugged the holes in your attrition bucket, you want to serve these profitable and worthy customers better. You want to better understand their needs and then fulfill as many of them as possible with additional products and services. Continually communicate with your customers. Give them value and solutions by focusing on them and their needs, not on your products/services: “Customers do things for their reasons not yours.”
Communicate in person, by letters, faxes, e-mails, via your Web site, newsletters, etc. You can’t over-communicate with customers. In fact, poor communication or lack of communications is the No. 1 problem in business (and for that matter in your personal life) today.
Repeatedly ask your customers:
“How are we doing?”
“What other needs do you have?”
“How could we improve our value to you?”
Your objective is to provide your customers with more value more frequently. Never sell a customer only once since real profits come from repeat business. So, set goals to increase the frequency and size of your repeat business. You want ongoing long-term relationships and ongoing sales, day after day, month over month and year after year.
Contact Mark Dipple at m.dipple@thegrowthcoach.com.

Comments

Comments closed.

Coronavirus

Afternoon, evening COVID-19 vaccination clinic planned Thursday

Crime

Concord man charged with woman’s murder in drive-by shooting

Ask Us

Ask Us: Have city, county elected officials received COVID-19 vaccine?

Local

City gives away nearly 100 trees during ‘We Dig Salisbury’ event

Local

Political Notebook: Bitzer expects most ‘Trump-like’ candidate to be favorite in state’s Senate race

Crime

Blotter: Concord man arrested in Rowan for indecent liberties with children

Coronavirus

Half of US adults have received at least one COVID-19 shot

Nation/World

Police: FedEx shooter legally bought guns used in shooting

News

Hester Ford, oldest living American, dies at 115 … or 116?

Local

Size of pipeline spill again underestimated in North Carolina

BREAKING NEWS

Kannapolis Police searching for suspect who fled scene of homicide

Education

RSS superintendent talks district’s future, strategic plan survey

News

Complaints and fines pile up against unpermitted landfill in southwest Rowan County

College

Catawba baseball: Crowd comes out to say goodbye to Newman Park

Lifestyle

History is a great teacher: Farming has helped shape Rowan County

Business

‘A safe place for them’: Timeless Wigs and Marvelous Things celebrates fifth anniversary

China Grove

County will hear request for more tree houses, hobbit-style homes in China Grove

Coronavirus

Livingstone College partners with Health Department to administer 500 Pfizer vaccinations

Education

‘Elite and it shows’: Staff at Partners in Learning at Novant celebrate news of national accreditation

Business

Biz Roundup: Food Lion earns Energy Star award for 20th consecutive year

Columns

Ester Marsh: What body type are you?

Nation/World

The queen says goodbye to Philip, continues her reign alone

Nation/World

Worldwide COVID-19 death toll tops a staggering 3 million

Nation/World

US, China agree to cooperate on climate crisis with urgency