5 Ways To Lose A Customer

“The purpose of a business is to create a customer”. —Peter Drucker

While this statement may be quite true at the most basic level, it also serves to underscore the reality that one of the ongoing purposes of a business should be to keep a customer. No business owner would argue this point, but creating and maintaining quality customer relationships is often one of the biggest challenges facing small businesses.

A Time Management Plan You Have Time for…

Our Coach insisted that we read Chet Holmes’ bestseller, The Ultimate Sales Machine and we’re glad he did.  Early in the book, Holmes outlines a time management program that not only do we have time for, but we are actually implementing in our business. The simple program has six steps:

The Leadership Commitment

Owning and operating a business isn’t something that one undertakes lightly. It requires a huge leap of faith. It’s both exciting to live your entrepreneurial dream, and at the same time scary because there’s no guarantee you’ll succeed.

As the leader of your business, you’re the one with the ultimate accountability for the business’ success. That is a heavy responsibility to bear.

Its not the Economy, It’s YOU!

Many say the U.S. economy is still in a recession based on the fact that unemployment is still high and consumers are continuing to temper their spending habits–two elements that define a recession. However, anyone with the desire to be an entrepreneur has to have the attitude of  that in a recession lies opportunity. Playing the “blame” game is no way to run a business…your business will fail because of YOU and nothing else……..

So how does an entrepreneur succeed in a recession?

1. Become Indispensable
In a tricky economy, it’s natural for people to want to protect the security they still have. In the service industry, one way to prove that your product or service is part of the solution is to point out the consequences that could occur if the service was not around. Try “secret shopping” your customers and document the outcomes; then secret shop a business that doesn’t use your service or product. If there’s an obvious difference, use these stories to sell your business back to your customers.

2. Invest in the Future
Most recessions last only a year or two. Companies that fail to continually invest in business improvements, training and marketing are way behind when the economy recovers. In terms of training, consider how to cross-train your team members while business is slow. It may enable you to perform better later on.

3. Seek Out Referrals
Nowadays, many businesses assume there are no sales to be made, so they stop trying and sit on the sidelines. While sales may be harder to come by, make contacts now so they will pay off later. Furthermore, if you’re pulling back on your advertising budget, referrals may be your best bet for generating customers. You should also create a program that rewards current customers for referrals.

4. Buy Weaker Companies
If you can manage the integration process, a down economy can be a great time to acquire a business.