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.
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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.
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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.
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In the previous post on “How to Hold onto Your Existing Customers” we mentioned that regular customer feedback is one of the important tools you should use to keep a pulse on your business and understand how your customers perceive the value they are getting from you. The customer feedback also will raise any red flags that you need to address before they get out of control and the business is deteriorated significantly.
There are several avenues you can use to get customer feedback. If you have a web site for the business you can use the online poll using free survey tools such as Surveymonkey , Free Online Surveys. If you have a physical store you can use a simple typed form that customers can fill in while they are waiting. Even social media sites such as Facebook have poll utilities you can use to get customer feedback.
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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:
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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.
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Many business owners miss an opportunity to get the most out of new hires because they do not have well-thought plans to acclimatize new hires quickly. First few days of new hire play a large role in determining whether the person will contribute effectively to your business or will be dud.
In the previous posts we have identified several insights for hiring best employees and reducing staff turnover. Our goal here is to get the best use of your employees once they are hired.
I know several managers and owners who would give a written training manual to the new hire and let him figure out how things are done. In our experience nothing is more effective than on-the-job training by letting the new hire dive right into operations from day 1. In addition, there are several other techniques you can use to get the most out of your new hires. Below we show 5 most effective ones:
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In our previous post we mentioned that hiring best employees makes a big impact on how your business performs. We also showed how to go about hiring best employees for your business. However, we have felt that many employers are at a loss when they think about what questions to ask in the job interview. They end up talking about different things before wrapping up the job interview and making hiring decision based on their gut.
In this post we give you ideas on how you can to go in the interview well-prepared plan; so that you can get a clear picture of the job candidate and make informed hiring decision. We also mention what type of personal quality of the job applicant they aim to find out (in parentheses). By understanding personal qualities you can get a pretty good idea of what drives the person and whether he will be motivated and successful after you hire him. Here are the questions:
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It is fair to say that the owner of small business builds the business; but it’s the employees who make it a success. It has been our personal experience and those of countless other owners that if you want to make your business successful pay careful attention to who you are hiring. Hiring a “right” employee can improve your sales by almost 15-20%; while hiring the “wrong” one can bring it down by the same amount.
How do you make sure you are hiring the “right” employee? What are the good practices you can follow to ensure you don’t end up with someone who will bring your sales down? Here we outline suggestions that can help you do that.
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Let’s face it. Motivating employees that are making pretty good salary is hard enough. Now try to do it for those who are making minimum wage in a small business and you understand the magnitude of the problem.
However, all is not lost in this battle. There are ways to motivate the employees who are working part-time, on a minimum wage as long as you know what makes them click.
Below we highlight the 5 best ideas we have collected from our own experience and those of our colleagues and business partners.
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