Weekly Tax Tips

Monthly Tips

March 2010

Loyal customers are worth their weight in gold, and that's not just a cliché. Studies have shown that businesses often spend five to six times more to attract a new customer than to keep an existing one. Over the long term, those dollars add up. In fact, a company's skill at caring for its customers often determines its survivability in the marketplace. Make customers happy and they'll stick with you; disappoint them and they'll tell their friends.

Fortunately, building customer loyalty isn't rocket science (even if you're in the business of building rockets). It's a matter of focusing on a few basics, like the following:

• Hire friendly people. Grumpy salesmen and bashful receptionists don't generate repeat business. The staff you employ should enjoy interacting with people. Of course everyone has a bad day now and then. But if your employees regularly hide out in the back room instead of greeting clients, it's time to take a hard look at your hiring practices.

• Invite customer feedback. This can be as simple as spending a few minutes with a customer to inquire about his or her experience with your firm. Get specific. Don't just ask, "How was our customer service today?" Instead inquire, "Did our salesman answer all your questions about XYZ product?" You might also establish a focus group of customers to solicit ideas for improving your products and services.

• Follow up. If customers spend valuable time providing their opinions via surveys, suggestion boxes, or focus groups, don't ignore what they have to say. Let them know that you take their ideas seriously and are looking for ways to implement at least some of their suggestions.

• Never stop training. Often employees treat customers rudely or disrespectfully because they simply lack training in proper etiquette. Show them the proper way to answer phone calls, how to make eye contact and smile, how to help without being pushy. With a little focused training, most people can learn good customer service skills. Take time upfront to develop these skills in your employees, and you'll reap dividends in customer loyalty.

• Model proper behavior. Simply put, the boss should exemplify top-notch customer service. If staff see you treating clients poorly, don't be surprised if they assume that such behavior is acceptable.

Remember: it's easier to keep an existing client than to beat the bushes for a new one. It's cheaper, too.