As an entrepreneur, it is less expensive to keep a current customer than it is to cultivate a new one. How to keep customers coming back is something that both service providers and product sellers need to keep in mind and plan for. Yes, you can count on some organic growth and some clients and customers might stay with you because they’re complacent or they simply dont want to do the work to find someone to replace you — that is not the reason you want to keep a customer.
You want to keep customers coming back because they are delighted with your goods and/or services.
One-off clients and one-off product sales are draining to your mental energy and won’t help you plan for future growth. Cultivate your current customers and look for ways to keep them with you. Here are a few ways to do that:
Don’t get “bored” with your current customers. Some entrepreneurs love the thrill of the chase and caring for current clients is boring to them and they are always seeking that greener pasture. I recommend keeping current customers as happy as possible.
What can you do to systemetize processes and onboarding and training your staff to care for clients? Make it seamless for everyone involved.
Don’t be afraid to have your client work with a staff member. If you can be out there selling to larger clients or taking on more difficult tasks or creating new products and services give your clients to a trusted staff member. Don’t let your ego stop you from delegating.
Know what sets you apart and let that be your signature product or program. This product or program can be your business’s differentiator.
Check in with current clients. Don’t assume they think everything is going well just because you haven’t reached out. Stay in touch means staying front of mind and may keep them from hesitating when they pay your current invoice.
Offer support services. If you can provide add-on services, do so. This may make you a more well-rounded agency and won’t give your clients any reason to have to shop.
Create new products and services and offer them to current clients as upsells at “loyal customer pricing.”
When is the last time you checked in with your current clients to assure they are still happy?
How often do you get out of the office and meet people face-to-face? Do you attend networking events? Do you find them useful or do you just feel your time would be better spent if you just stayed in the office? What is your business networking strategy? Do you have one? If you don’t, then you probably are spinning your wheels and you should just stay in the office.
If, however, you want to expand your reach and meet new potential referral partners, then you need to get out of the office and talk with people.
What Is Your Business Networking Strategy?
Here are some tips to help you implement a business networking strategy to make meeting new people more effective and efficient.
WHO will be at the networking event? If you go to an event knowing none of those in attendance are your ideal client, then why would you go? Look for events that may play host to your potential ideal client.
WHAT do you want to accomplish at the event? Remember, you shouldn’t go to an event thinking “I’m going to sign up clients and make sales today” instead go the meeting thinking, “I am going to meet new people and start building relationships today.”
WHY do you feel the need to network? Do you want some fresh ideas? Are you looking for a colleague?
When you’re at the networking event make sure you listen more than you talk. Get to know the person in front of you. Don’t just walk around handing out business cards without making a meaningful connection. Ask the person you’re talking with what they hope to get out of the event. Are they looking to build relationships? Are they first timers? Do they have a business that might be a fit for yours and you could become colleagues? You won’t know unless you ask.
Look for networking events in your area and make a list of those that make sense for you to attend. Remember, it may make sense to network outside of your particular niche if you want to grow your client list.
Many individuals will shy away from pursuing a dream of owning their own business because they are afraid of failure and they have heard misinformation. Have you heard these business myths? Are these myths stopping you from the dream of entrepreneurship? We’d love to know!
Have You Heard These Business Myths?
You’re either born an entrepreneur or you’re not. This is blatantly untrue. Just as you’re not born knowing how to read and write, but you can learn — so too can you learn to be an entrepreneur. Follow individuals whom you admire. Take classes. Find a mentor.
Half of all businesses fail. Sure, businesses do fail, but I don’t believe it’s at that high a rate.
You must work 24/7/365. If you’re a believer of this myth you will burn out and health issues will arise from the hours you work. Being an entrepreneur should afford you some flexibility in your work hours. You need to structure the business to accommodate your life, not the other way around.
Everything is a tax deduction. I suggest you talk with your tax guy and your accountant and an attorney to assure your business entity is correctly established. Know what you’re allowed to “write off” and keep receipts.
You can operate without a business plan. This is not true. Your business plan is your roadmap to success. It doesn’t need to be a 1,000 page plan, but it needs to be more than a thought in your mind. Write down your mission, your vision, how you will market, what you will offer, your prices, and more.
What business myths are keeping you from your dream of owning a business?
Is It Time To Raise Your Prices? It’s a question that every entrepreneur must ask him or herself during the course of running a business. Whether the cost of goods to manufacture your items has increased or if you offer services, you need to determine whether your time is more valuable than it was durng the start-up phase.
There are many reasons to raise your prices, but it must be done smoothly and you need to let your clients know well in advance of the increase. Look at big companies like Starbucks. It recently raised the price of a cup of coffee by 10-20 cents and the cost of its other drinks even more. It was not a secret. News was shared online and across social media. Customers needed to decide before they got to the drive up window whether that cup of coffee was worth the extra money. Give your clients time to answer that same question.
Don’t justify the increases, but do let your cilents know. Onboarding new clients won’t be an issue because they don’t have a history with you and your pricing. Here are things to keep in mind if you’re raising your prices.
Don’t assume that if you switch to lower cost components to manufacture your products is the way to go. If the quality falls, your clients will let you — and others — know.
Raise prices on new clients, not on current ones. This may not work, but it’s something to consider.
As mentioned, give them advance warning. If your current clients are happy with the goods and services you provide, they may not balk at an increase.
Is it time to raise your prices? How do you decide?
What is the life cycle of a sale? Do you imagine that every time you meet a new potential client that you will close the deal? How long does it take to make a sale? If you don’t have a realistic expectation you may feel as though you’re spinning your wheels. You may also feel as though your efforts are for naught.
How Long Does It Take To Make A Sale?
We know it’s not always easy to think about talking with someone and walking away without a signed contract or without a check in your hand, right? You need to make sales and make money in order to remain viable? Take a deep breath and think back to the last time you met with someone and make a decision right then and there? When was it? Probably at the grocery store, but probably not when you’re just starting out a process of buying goods or services, right?
Here are the steps I have found to be part of the sale life cycle:
Prospecting. You need to meet people to get them into yoru pipeline. Without connections and prospects, how will you grow?
Get out of the office. It is so easy to stay in the office and fire off emails to potential clients. I urge you to get out of the office and shake hands and make real face to face connections.
Pain points. Identify those in a potential client and speak to those. Don’t make your approach a one sizes fits all. Tailor the conversation to the individual.
Listen. In order to address your potential client’s pain points you need to listen. I always urge people to resist the urge to fill in silences in the conversation. Let your client mull over the situation and ask you questions. Delve deep and understand how your mousetrap will help them and how it’s better than the mousetrap they’re using today.
Commit. Once your prospect is ready to take the next step with you, you want to clearly spell out what you will provide him, what he needs to get you and what the cost of that exchange will be. Be transparent and clear up any potential gray areas.
