June 2007

Easy and Innovative Ways to Attract New and Retain Old Customers

What is the most essential element of a successful small business? The answers to this question could be as varied as the people who are asked. For instance, a business consultant might answer that it is a meticulously detailed business plan containing cash flow projections to market analysis. A banker would probably say that a business can not be successful without profits, or at least enough revenue to pay the bills. A land developer might say that location is the most important factor because a highly visible storefront draws in more customers from the street.

All of these components are certainly important but the customers themselves are who make or break a business. A successful small business owner knows that happy customers often tell others when they find interesting products and receive excellent services. However, gaining customer loyalty and earning their repeat business requires more than those basic standards. Fortunately for small businesses there are many innovative ways to keep customers coming back. Some examples of these tools for success are cross-business promotion, frequent communication with customers and creation and utilization of a loyal customer base.

Cross-promotion of a business can also be called “partnering for success” because it involves joining forces with the owners of complimentary businesses. All parties involved benefit from increased exposure to the type of customers they’re targeting. For example, florists specializing in weddings could work with bakeries, caterers and photographers to attract brides and grooms and dog groomers could connect with veterinarians and pet supply stores.

Local chambers of commerce often hold events to facilitate business to business networking. Once you find owners of complimentary businesses, make the connection by offering them a chance to sample your product or service while soliciting their referrals. Discuss the possibility of exchanging brochures or business cards to display in each other’s store. When businesses work together, everyone benefits including customers.

Another tool to generate repeat business is frequent communication. With a little creativity it is possible to find inexpensive methods of keeping in touch with customers. One idea is collecting e-mail addresses and permission to send them information at the check out counter. You could send all of them a basic newsletter highlighting upcoming events or personalize e-mails notifying them about sales or new inventory. Another idea is to start a web log, or “blog”. This online journal can provide customers with the latest information on sales as well as announce new products, services and events. Business owners could get creative with blogs, making their business more personal to their customer. Finally, don’t forget to pick-up the telephone since not every customer is technology savvy. Calls can be limited to frequent customers to facilitate loyalty.

Finally, create and utilize your loyal customer base. One way to bring customers back is initiating a frequent shopping program that offers a reward after a specific number of purchases or visits. Design and implement customer programs such as a birthday club that grants them special savings during their birth month. A reward for the most frequent customers may include inviting them to an exclusive event, with prizes as incentives for bringing a friend or two. For example, a clothing boutique may consider holding an “invitation only” fashion show to kick off the new season. During the event customers have the opportunity to purchase the latest styles and benefit from exclusive savings. These ideas take a little effort, but they create many life-long customers.

Marketing to maintain and attract new customers doesn’t require spending exorbitant amounts of money on billboards or radio advertisements. With a little imagination, the amount of time and effort spent using these simple tools will multiply the greatest asset a business could ever have – its customers.

Visit the Southeast Kentucky Small Business Development Center for further assistance on this topic or any other small business issue. The SBDC offers affordable training courses on a variety of topics through our service center and on-line at www.ksbdc.org. Additionally, we provide one-on-one management consultations at no cost. Our highly qualified counselors can assist with issues specific to your business. For more information or to schedule a consultation please call us at 1 800 225-SBDC (7232). We are conveniently located at 1300 Chichester Ave., Suite 211, Middlesboro, KY. 40965; on Southeast Community & Technical College Campus. We look forward to providing you the resources you need to succeed as an entrepreneur.

Here are some of the events coming this month: