5 Key Ways to Build Customer Relationships

Money can't buy one of the most important things you need to promote your business: relationships. How do customer relationships drive your business? It's all about finding people who believe in your products or services. And when it comes to tracking these people down, you have two choices:

You can do all the legwork yourself and spend big on marketing, but that's like rolling a boulder up a hill. You want to drive your business into new territory, but every step is hard and expensive. There's another less painful, and potentially more profitable way...

You can create an army to help you push that boulder up the hill instead. How do you do that? You develop relationships with people who don't just understand your particular expertise, product or service, but who are excited and buzzing about what you do. You stay connected with them and give them value, and they'll touch other people who can benefit your business.

Powerful relationships don't just happen from one-time meetings at networking events; you don't need another pocketful of random business cards or Zoom screen-shots to clutter your desk. What you need is a plan to make those connections grow and work for you. And it's not as hard as you think. Here are five essential tactics:

1. Build your network - it's your new business lifeline.

Your network includes business colleagues, professional acquaintances, prospective and existing customers, partners, suppliers, contractors and association members, as well as family, friends and people you meet socially and in your community. Contacts have potential customers waiting for you to connect with their needs. How do you turn a network of contacts into customers? Not by hoping they'll remember meeting you six months ago at 'that networking event.' Networking is a long-term investment. Do it right by adding value to the relationship, and that contact you just made, can really pay off. Communicate like the life of your business depends on it!

2. Communication is a contact sport, so do it early and often.

No matter how charming, enthusiastic or persuasive you are, no one will likely remember you from a business card or a one-time Zoom meeting. One of the biggest mistakes people make is that they come home or log off from networking events and fail to follow up. Make the connection immediately. Send a 'nice to meet you' e-mail or connect on social media. Immediately reinforce who you are, what you do and the connection you've made.

You rarely meet people at the exact moment when they need what you offer. When they're ready, they will only think of you if you stay on their minds. It's easier to keep a connection warm than to warm it up again once the trail goes cold. So take the time to turn your network of connections into educated customers.

3. Sharing success keeps relationships strong on a shoestring budget.

Build your reputation as an expert by giving away what you know. You have interesting things to say! An easy way to communicate is with a brief e-mail (with their permission) that shows prospects why they should buy from you. Share your wisdom on social media, give advice that entices consumers and leaves them wanting more. Contacts and customers who find what you do interesting or valuable will forward and share your message, just like word of mouth marketing.

4. Reward loyal customers, and they'll reward you.

According to global management consulting firm Bain and Co., a 5% increase in retention yields profit increases of 25 to 100%. And on average, repeat customers spend 67% more than new customers. So your most profitable customers are repeat customers. Are you doing enough to encourage them to work with you again? Stay in touch, and give them something of value in exchange for their time, attention and business. It doesn't need to be too much; a personal value add, invitation to a special event, helpful insights and advice, or news they can use. Just remember: If you don't keep in touch with your customers, your competitors will.

5. Loyal customers are your best salespeople.

Spend the time to build your network and do the follow-up. Today there are cost effective tools that make this easy. You can e-mail a simple newsletter, an offer or an update message of interest to your network (make sure it's of interest to them, not just to you). Then they'll remember you and what you do and deliver value back to you with referrals. They'll hear about opportunities you'll never hear about. The only way they can say, 'Wow, I met somebody who's really good at XYZ. You should give her a call,' is if they remember you. Then your customers become your sales force.

If our home is all about location, location, location, then small business is all about relationships, relationships, relationships. Find them, nurture them, and watch your sales soar.