Improving your customer service

For all businesses customers are key. Economic conditions are still difficult, so it's more important than ever to ensure existing customers continue to buy your product or service and that you are doing everything you can to attract new business. Companies that don't increase turnover each year are shrinking in real terms.It's vital to be well informed, not only about the industry and market you are competing in but also about your potential customer base. For those just starting out, it may seem tempting to throw your energies into an exciting venture and put the 'boring' research to one side until later, but this is likely to prove a costly mistake. Look at the viability of what you're selling; consider who to target in terms of the socio-economic demographic and understand that those people will be purchasing both now and in the future. Decide whether to offer an online or retail resource, and think about the added value that people are looking for and how to get them to make a repeat purchase.

Sales boost
In many sectors, there are several strategic options for increasing your customer base. The first is to sell more to existing customers: for example, by selling a greater number of your higher-margin products or services to more of your customers. Another tactic is to expand your reach to include similar kinds of people who aren't currently customers. You might also look at how to find new channels through which to sell; or sell into new markets. Another option is to create a new product or service to sell, either to existing or new customers.Knowing what your customers want and need is fundamental to business successWhatever you decide, aim to get to know your existing business and industry as thoroughly as you can. Every business needs a good awareness of its competitors, both potential and actual, but it's also wise to stay up to date with industry standards, accreditations or legal requirements for operating in the sector.

Knowing what your customers want and need is fundamental to business success. Even if you are convinced your products and services are the best on the market, no one is going to buy them unless they want them or believe they need them, and unless you are clearly offering a unique sales proposition. This means asking questions about who buys your product or service. Why and how do they buy, and at what times?

For a lot of businesses, the key is to retain the current customer base, and that's all about creating a value-added service. What can you give the customer above and beyond your competition? It's about having a dialogue and the confidence to approach them and get feedback. You need to ask what they want, whether they would buy from you again and, if not, why not.

If you know that people have stopped using your service, it's important to find out what has changed. Aim to rebuild contact and show your former customer that you understand his or her needs. If you find that your product is considered too expensive, consider making a time-limited offer. Studies show that the faster you contact a lapsed customer, the more likely they will come back to you.

Customer feedback
Talking to customers, and potential customers, can help you to create a valuable picture of what's important to them, and that will help you drive sales by emphasising the benefits your product or service can bring them. Ask why your customers need you. Once you've identified the reason, remember it may change - as your business or your market changes - and that just as different customers have varying needs, so too your unique sales proposition may not be the same for everyone.

Keeping an eye on developments in the market or for individual customers can also help you to spot trends, which in turn will help you to anticipate what a customer will need. Here, small businesses sometimes have an advantage over large ones, with more personal and immediate business relationships.

Think of the acronym AIDA (attraction, interest, desire, action): a four-step plan to motivate a new customer to buy your product or service. Sometimes a lateral approach works equally well. You need to use whatever is out there to your advantage. A lot of businesses now use social media sites to network and find new customers. Many have won jobs and customers outside of their immediate region through this method, and it's very cost-effective because it only costs you time, not financial outlay.

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