The general rule in business is 80% of your business comes from existing customers and 20% from new customers. So why do most companies focus their marketing budgets on gaining new clientele? Unless you are a new start-up, the focus of your business should be retaining your current customer base. Why beat yourself up month after month trying to obtain new customers when current customers are not coming back?!
Yesterday, I was at a local market within walking distance from my home. I have been a loyal customer of this establishment since their opening, approximately 5 years ago. I frequent this market because it is convenient to my home, they have products that I desire, and have a sandwich shop that is rather delicious. In the last two weeks, on their sandwich menu, they decided to no longer make substitutions nor have a “build your own” sandwich. This poses a problem for me, since I do not like certain ingredients/condiments. When I inquired about the “new policy,” I was met with a gruff answer stating the owner made the decision to no longer allow substitutions. Being in the business that I am, it immediately dawned on me that they have absolutely no concept of what their customer needs are.
Lack of market research, being unaware of what your competition is doing, and not monitoring new businesses opening in your surrounding area does not allow you to grow your business scope to meet additional needs in the market. This, paired with lack of focus on customer needs, is a huge issue in retaining clients.
At Brand X, we are constantly researching trends in the market to be able to suggest additional services and products that the market is demanding. Trends like creating a loyalty program, based upon your business model, that in turn creates customer perceived value. When your customers feel valued and you are meeting their needs, you are guaranteed customer retention. Do you think that your focus is on meeting your client’s needs? If not, please contact Brand X Consultants to evaluate your business and where it is in the market. We can meet your needs!