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Customer retention and acquisition

In customer acquisition, it is hard enough to win the race – then you need to keep running just to stay in place. But what is the best way to gain new customers and keep current ones loyal to your company?

When it comes to customer retention and acquisition, it is no good putting all companies in the same box, whether they are large or small, crafts or traders, service providers or producers. What is more, of course, it makes a difference which sector is concerned, and especially whether the company deals with thousands of customers or just a few. Our tips are aimed at a company with a limited, manageable number of clients.

Often, when there is plenty to do, little time remains to keep your customers sweet. You may be working with your back against the wall to complete your orders on time. At this hectic place you might indeed be somewhat brusquer with a customer than usual, or glance impatiently at your watch during a customer meeting as you would really like to simply stand up and go. After all, everything has been said and done, and piles of work are waiting in the office. This is embarrassing if the customer notices – and not exactly good for your relationship.

Acquisition? When? You are already working late into the evening and at weekends: when on earth are you supposed to look for new customers? Who would even have time to put together your advertising? And who can take care of new customers if they show signs of wanting to place an order?

This is a vicious circle which you need to step out of. Eventually, if you do not pamper your customers, you will pay the price – and if you only start canvassing when you are in urgent need of new customers, that will be much too late.

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Customers need nurturing

Of course, the best way to keep your customers loyal to your company is always to deliver an excellent job. An equally effective method is to use your know-how to gradually make yourself indispensible. But even that is often not enough. And anyway, how many of us manage that?

This is why the same applies to customer relationships as to any other relationship: they need to be tended and nurtured. Customers need to feel you are listening and taking them seriously. They want to feel important and cared-for.

For this reason you should try to build up personal connections with your customers. For example, if you buy a bagel every day on the way to work at the same baker’s, you will feel pleased if the staff there start to recognise you; if the girl behind the counter simply smiles, raises an enquiring eyebrow and already has the bag in her hand when you go in. If you always have to ask for the same thing again every morning and get the feeling that they are not taking you in as a person, then you will feel annoyed at being ignored – and eventually change bakers.

So show your customer that you are familiar with him and his needs. Always address him by name, refer to old acquaintances or shared events, and have a chat with him from time to time about other subjects. This way, you will get to know a whole new side of him, and it will help you to judge him better. In brief, do not simply see him as a customer, but also as a person, and treat him accordingly.

There is no such thing as lead scoring – at least not as far as the customer is concerned. He should never feel as if he as been put in the “also ran” category. Every customer would like special treatment. Of course, that is not possible – but no customer should ever be made to feel it.

One consequence: the boss needs to be around – not always, of course, but every now and then, and not only when problems arise. Customers who are always dealt with by the second-in-command will eventually feel they are second-class – and nobody likes that.

With long-term business relationships, always take stock together now and then, preferably making a special appointment to do so, when there is no rush. Pick up nuances and try to develop an instinct for whether the customer really feels in good hands with you.

When you are not in regular contact with customers, you should always send them a reminder of you from time to time. Not necessarily at Christmas, when everyone is flooded with post and coping with end-of-year stress; find or create another occasion to do so. How about a little message at the start of spring? Or some cheery words on a gloomy November day?

Customer retention also includes everyday topics such as being a good host on company visits; arriving punctually at appointments and dealing productively with complaints. You can find more on the subject using the keywords “host”, “customer contact” and “complaints”.

Acquisition: the fine line between pushiness and persistence

Of course, any form of advertising and public relations work – such as ads and press releases – also serves to acquire new customers. Nonetheless, it is usually also necessary to approach new prospects along other routes.

The easiest way to gain new customers is through personal connections, which is why it is important to maintain these connections and to network. So pull yourself together: however much you may deserve to put your feet up after work, do not stay on your sofa every night, but go out instead. Keep up with friends and acquaintances. Stay fresh in their minds by giving them a call every now and then, or getting in touch on certain occasions – for example, write Christmas cards or birthday greetings, or send a sign of life from time to time in an e-mail. Even if your acquaintance cannot become a customer, he may know a friend of a friend...

If you have set up in business, you cannot afford to be shy: go to events or join associations and take every opportunity to meet people. Tell them about what you do and ask about their job. Give them your visiting card. Do not be afraid to remind them of the meeting the next day and send them information about your company.

Trade fairs can also be a good place to acquire customers. If having your own stand is too complicated or expensive, go as a visitor. It is true that you rarely come across the right contact person straight away, but you can get an impression of the company and collect material which you can refer to later.

At the same time, of course, you can buy “cold leads” or, for example, select leads from the local business directories and send them sales letters. To stop the letters being filed straight in the waste basket, however, you need to make a special effort, for example not sending everyone standard letters, and making personal references to the addressees to gain their attention.

Sales letters you throw together just before you finish work, just to get things done, should not end up in the postbox at all. Take your time, make an effort. The letter has to be perfect, without a single error. As has the material you enclose to present your company. Find out more using the keywords “corporate identity and vision”, “mission”, “corporate philosophy”.

However, just sending letters and brochures is generally not enough. You need to pick up the phone and make a call, and stick at it for quite some time. This is where it becomes harder to run the fine line between pushiness and persistence. You need to have a feeling for when the whole thing is becoming counterproductive, but you should not give up too easily.

Incidentally, customer acquisition is a matter for the boss. If you let someone answer the phone who cannot provide knowledgeable information, you have already lost the race.

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