The Power of Customer Follow-Up

Customer follow-up is powerful for building profitable relationships and boosting business success.

Clients and customers are the backbone of any business, regardless of whether it's online, offline, or a blend of both. Studies have shown that acquiring a new customer can cost five times more than retaining a current one. Therefore, it's essential for small business owners to develop strategies that focus on customer retention and relationship-building. Here are three key reasons why customer follow-up is essential for every business, with a particular focus on small businesses.

Cultivating Relationships: Imagine making a substantial purchase from two different small businesses - a local jewelry store and a boutique clothing store. You are pleased with the level of service during your shopping experience at both stores. However, one of the businesses sends a personalized "Thank You" card within a week, expressing gratitude for your purchase and offering a promotional deal for your next visit. In their Thank You card they invited you to reach out to them if you had any questions or concerns about your purchases. The other business never follows up.

Which establishment would you be more likely to revisit and recommend to your friends? Most people would prefer the one that takes the time to follow up and show interest in building a relationship.

Cost Efficiency: Whether you run an online business selling your products or working as an affiliate, it is crucial to retain customers who will continue to do business with you. The same applies to offline businesses. Replacing a lost customer requires time and resources that could be better spent on enhancing existing customer relationships and fostering an environment that promotes customer retention. In fact, studies reveal that an increase in customer retention by 5% can lead to a company’s profits growing by 25% to around 95% over a period of time. In the meantime, a lost customer means lost revenue for your business.

Minimizing Customer Dissatisfaction: Transparent communication is a vital component of building and maintaining relationships. This principle holds true in the business world. The quote by Maya Angelou, "No one cares how much you know until they know how much you care," rings especially true in this context.

Customers who have negative experiences are often more likely to share their stories with others, while positive experiences might only reach a select few. It is better for dissatisfied customers to voice their concerns directly to you, the business owner or entrepreneur. By implementing follow-up surveys or other feedback programs, you demonstrate that customer satisfaction is a priority for your business.

While you cannot eliminate customer dissatisfaction, how you handle it can make the difference between having a loyal customer, or one who spreads their dissatisfaction to all who will listen. I love this quote from Jay Baer in his podcast episode, Why Social Media Customer Service is the New Marketing: “Customers who have a problem that is successfully solved are far more loyal, and spend far more dollars, than customers who have never had a problem.” —@jaybaer

Summary

By making your customers and clients feel valued and appreciated, you can foster strong, long-lasting relationships that contribute to the ongoing success of your small or home-based business. When you focus on exceptional follow-up and genuine care for your customers, your business can thrive in today's competitive marketplace.??

Claim your copy of my Special Report, "Relationship Marketing: Key to Small Business Success" at https://50andWiserCoaching.com/smallbizsuccess/