Retain Costumers to Promote Small Business The spirit of entrepreneurship is the core component of the fabled “American Dream” and those entrepreneurs in Ogden who build small companies into successful corporations realize their personal dreams. Small business in Ogden hold great potential for success for those with the right work ethic and skill sets attributed to gaining knowledge.
Business of Retaining Customers One such knowledge that most entrepreneurs need to acquire in order to have success is the business knowledge of how to retain, not gain, customers. Too often startup shops and business will focus on building a wide client base and forget about the customers they have already recruited to their product. By doing this a small business can miss out completely on a solid revenue stream that will provide them the foundational base they will need to build a wider client base in the future. This is not to say, however, that promoting one’s product to new prospective clients through marketing is not essential or a waste of time. Certainly marketing to new clients is not a wasteful investment of capital as a growth in clients is indeed required for a healthy business to grow. However, for a startup business or small business to build upon their client base they must first retain the clients they have. Within the business and marketing textbook and practical business handbook Marketing Metrics the authors claim that it is up to fifty percent easier to sell a product to an existing client than it is to sell that same product to a new prospective client. Businesses have always known that selling to an existing client is far less expensive in overhead as well as an easier sale overall because an existing client is already sold on the product that is being retailed.
Benefits to Retaining Customers Not only are existing clients easier to sell to but they are also the literal future of a small company. According to a business study performed by Bain and Co., an increase of only five percent in customer retention will boost a company’s overall profitability by seventy-five percent. Additionally, according to the Gartner Group, a full eighty percent of a small business’s future income will be generated by just twenty percent of a company’s existing customers. Because a company’s future depends greatly on retaining clients it is imperative that entrepreneurs and small business owners develop and implement a client retention program.
Some ideas that will help a small business retain their clients that can be included into a customer retention program may include such things as a way to track existing clients and their future needs of the product, understanding the needs of the client and their real satisfaction concerning the customer service they experienced, and by running relevant promotional campaigns offering discounts or other benefits to returning customers. Another way to promote a small business to its existing clients is by effectively using social media and the internet through such things as a user-friendly web site constructed by web design professionals in Ogden. Web design in Ogden can be accomplished by hiring trained and skilled professionals who will ensure the small companies web sites and social media sites are optimized to retain existing clients.