Let’s face it, almost all business and sales professionals are feeling the pinch of today’s weak economy. It’s no secret that there has been a shift in consumer confidence due to what is known as “The Perfect Economic Storm.” Between rising gas prices, foreclosure crises, declining home sales, and rising costs associated with just about anything for sale, it’s surely a worrying time for everyone.
The reality of every business is that we will always face ups and downs. There will always be better times and there will always be worse times. The big question is always how to weather the storm and survive the changes in your market for the long term, no matter what is going on around you.
During my career, I’ve seen my share of peaks and valleys. I’ve also worked with and for many companies that struggled to stay afloat and had to make extremely difficult business decisions that affected people in ways they never expected.
There’s a very simple rule I often recite to sales professionals that rings even more true in uncertain economic times, but it applies no matter what’s going on. That rule is: there are two ways to grow your business. You can sell more to your current customers or you can sell to more customers. Pretty simple, right? It sure is.
The important thing about that rule is to focus heavily on customer retention during downtimes. For any company, its customers are its most valuable assets. Here are some tips and ways to retain clients that I’ve seen proven effective during my career.
Get feedback from your customers
There is nothing that scares me more than a group of people sitting around a table discussing what they think their customers want without any real knowledge or information directly from their customers. Don’t make assumptions! People enjoy providing feedback, and there’s nothing more valuable than hearing feedback from your customers about what they need, what their concerns are, and their insights into ways your business can improve. More importantly, it shows your customers that you care and are willing to make adjustments based on their feedback.
Treat each customer as if they were the only one
When a customer leaves a long-term business relationship or chooses to buy from another company, the reason is often related to how they are treated or specific areas of their experience with the company that are missing. You need to show customers how important they are to your organization and constantly remind your team how important it is to go above and beyond during every customer interaction they have.
Develop Loyalty Programs
As consumers, we have all seen examples of customer loyalty programs that encourage us to continue doing business with a certain company. Consider all the hotels, car rental companies, and credit card companies that have mastered this concept. A good customer loyalty program will drive repeat business, as customers have something to continue doing business with your organization.
Loosen your credit terms
I know everyone with a role in finance is embarrassed to read this, but trust me on this one. Try to offer your best customers extended terms or other creative forms of financing that will positively impact their cash flow. When customers are recognized and rewarded for their good payment history and loyalty, that trend is likely to continue.