The right way to keep your customers

Jun 23 2008 by Karen Dent, The Journal

WE all know how difficult it can be to attract customers, so why do many businesses miss out on some great opportunities to keep them? The cost of finding customers can often outweigh the cost of retaining them.

The techniques you use to keep customers will depend on the type of businesses you are in. But whatever the business, a customer relationship management (CRM) system should form the foundations.

There are many different types of CRM systems available from lots of specialist suppliers, but for many businesses, a basic system is better than none at all. A simple spreadsheet with customer details, contact preferences, previous order information, buying patterns, preferences, selected personal information etc is a good starting point. However, if successful, a professional system could help improve your business even further.

How many of you know who your customers are, how they buy, when and how often they buy, where they buy and what they buy? A good CRM system will help you obtain this information and use it to ensure your customers are dealt with in the most appropriate way. However, CRM is not only about technology. The ethos needs to be ingrained in the business and each member of staff should ‘buy in’ to the idea.

CRM systems have many advantages but here are just a few of them:

Improved relationships with customers through better understanding their needs.

Ability to anticipate orders

More targeted marketing to existing customers

One consideration to make with CRM is the Data Protection Act. To find out more about what data you are able to keep and the best ways to manage it, instructions can be found on the Information Commissions website at www.ico.gov.uk

Why not give it a go? You never know, with improved relationships with your current customers, your business could really benefit. And remember, the more you put in, the more you will get out!

The ethos needs to be ingrained in the business and staff should ‘buy in’ to the idea