More Ways to Pamper Your Best Customers


In the previous blog post we argued that for many small businesses their best customers contribute more than 30% of sales and profit even when they make up only 10% of total customer. We said that you have to make these customers feel special by giving them special treatment and recognizing them.
In this post we will explore additional ways by which you can treat your best customers in a special fashion.
[Read more…]

How to Pamper Your Best Customers


As we mentioned in the previous post on “Do you know who your best customers are?” for many small businesses their best customers contribute more than 30% of sales and profit even when they make up only 10% of total customer. Not only this; but there is additional benefit they generate for your business that is equally important. They are also your evangelists. They bring in additional business by spreading word about your business to their friends and families.
Given the importance of these customers to your business it is imperative that you take good care of them and give them special treatment. These are, after all, the customers that will help you grow your business.
So how do you treat these customers well and pamper them? The key to remember, when taking care of these customers, is to make them feel special. After all, they are kind of special to your business! You should not limit yourself to discount and free products when providing them special treatment; although they are important. You should also think about intangibles such as recognition, appreciation, etc.
Below we have listed several ways by which you can pamper your best customers and make them feel special. Feel free to add your voice in the comment section.
[Read more…]

Do you Know Who your Best Customers are?


For most small business their “best” customers contribute more than 30% of sales and profit even though they make up only 10% of total customers. Think about this!! These are the customers that help you pay your bills. Not only do they deliver you more sales and profit directly; but they also help you increase sales indirectly by spreading good word about your business to their friends and families.
Given the importance of these customers it behooves you to know who they are. Unfortunately, not too many business owners spend time identifying these customers let alone making sure they are taken good care. In this post we give you several ways you can identify your best customers. We will look at how to take good care of them once you have identified in the subsequent posts.
[Read more…]

How can you Hold on to your Existing Customers


As mentioned in previous post most businesses lose large percent of their customers on a regular basis. We identified several reasons why customers leave. In this post we want to give you tips on how to make sure you retain large portion of your existing customers.
Losing a customer can cost you lot more than you realize. Research shows that it costs multiple times over to get new customers than to hold onto existing ones. You have to spend money on marketing and advertising as well as offer them incentives to come to you again. Our advice to all business owners is this – DO WHATEVER YOU HAVE TO DO TO HOLD ON TO YOUR EXISTING CUSTOMERS.
Here are the steps that show how you can accomplish this:
[Read more…]

Do you know Why your Customers are Dumping you?


If history is any guide; you will lose about 20% of your current customers by the end of the month and 40% by the end of the year. I know it sounds terrible; but that’s fact of life. While 30-40% of sales for any business come from existing customers; the rest comes from customers using revolving door. They will come and go for a variety of reasons.
This customer churn can be costly for your business. You need to constantly recruit new customers to fill the gap left by those customers who have dumped you. This costs money reducing your profit. It is said that it is 4 times more expensive to get new customer compared to retaining the existing one. We will look at the ways to stop customers from dumping you in a later post; but let’s understand why they leave you in the first place. The reasons are quite varied and some are easier to correct than others.
[Read more…]

What can you learn from Zappos.com’s $1.6 Million Mistake


If you are not standing by your core values at the time of crisis and instead take a myopic view of the situation you will miss out on building a long-term, thriving business. Just look at what Zappos, the popular shoe site, went through on May 23, 2010. It lost $1.6 Million dollars within matter of hours. But it’s what it did afterward that is the real story.
For those who don’t know Zappos; it is an online web site that sells shoes. In the process it has built a Billion dollar business!! It has done this by focusing on core tenets of providing exceptional customer service at any cost. Amazon.com just bought the company last month for $928 million.
So what happened?
[Read more…]

Does Your Business have Social Media Strategy?


If you don’t have a strategy to deal with Internet and social media you might be in a danger of losing lot of business. Just look at this article in Detroit Free Press past Saturday. To summarize the article – a student from Western Michigan University claims his car was illegally towed from his apartment complex by the tow truck company. He created a Facebook page to fight with the towing company and attracted 11,000 “fans” on the page; who joined him in the revolt saying they too had similar complaints against this company. The result was that that towing company lost half of its commercial accounts.
[Read more…]