Customers are the lifeblood of any business, so it’s important to keep generating leads and keeping your customers.
But doing so often worries businesses, with more than one in three companies saying generating new business is their biggest concern.
We spoke to two small business owners and asked them to share their experience of growing their customers.
Here’s what we’re up to:
1. Know your prospects and customers
There is a lot of talk about personalization and customer insight. It’s because it works.
Understanding your customers’ needs can lead to a better understanding of your audience and allow you to develop services that match your customers’ needs.
It can also help you stand out from your competitors, something Alice Boden understands. He is managing director of Teeny Greeny, which provides organic microgreen growing supplies—although when he spoke to Sage Advice for this article he was managing director of Bodice of Holt, which provided a home delivery service for fruit and vegetables.
He said: “We know our customers well and we know their preferences so we can tell them when certain items arrive – when it’s in season and in stock.
“This is where we have an advantage over the big suppliers. I have a good relationship with our customers and I know the business. Because I get the product and pack the boxes, I know exactly what’s going on and I can offer a fully personal service.”
And consumers aren’t the only ones who like this approach. It also works for business customers.
Mike Cockburn, director of Sogno, a training company for psychology researchers, said, “It’s important that we understand what our clients are trying to achieve: their purpose, their goals. Then we look at how we can accelerate that and customize our services to meet their needs. It leads to a more balanced relationship.”
2. Divide your time: support existing clients and look for new work
In simple terms, there are two ways to get more business—win new business or get your existing customers to spend more money. It’s important to make sure you don’t focus on one at the expense of the other, as both are important to growing your customer base.
Mike said, “We have repeat business and feel we provide the greatest value to long-term clients. But you need to keep bringing in new business. Old business can falter when budgets change or people move on, so it’s important to look for new opportunities. You need to start a relationship early, so it’s mature enough to bring in new business when your other work is done.”
3. Provide excellent customer service
In order to keep your existing customers coming back, it is important that you provide good customer service. In fact, research shows that 78% of people leave a sale because of poor customer service.
But if you do it right, it has a positive effect on your customers and on your mind. Loyal customers are worth ten times more than their initial spend.
Take the time to review your customer service, make sure you respond to your customers promptly and keep an eye on social media so you can provide great service online as well. Your customer numbers should grow as a result.
4. Make the most of your networks
Ask a business owner where their customers come from and most will tell you that word of mouth is their main source.
Recommendations from others are important: “The concept of social capital – the importance of relationships,” says Mike. “If I know the people I know, then there is mutual trust.”
Most of her clients come from public relations, something she is passionate about.
“I think people sometimes equate communication with sales and prospects can be sensitive to the sales process. But when you see so many contacts who will become customers, that reduces the pressure. The work we do is based on trust and openness so the way we communicate is a great opportunity to show that. I meet a lot of people and if I can help, they remember that. That can open new doors.”
Alice agreed. “Networking is very useful. It’s not just sales, but what you can do for people.”
5. Look for relationships with other businesses
Your ideal customer will already have relationships with other businesses and this presents a great opportunity.
By partnering with other firms that offer affiliate services, you can not only reach new audiences but also offer more to your customers.
It’s something Bodice of Holt is currently looking into: “There’s a bodybuilding firm in Bath, offering personal training and nutrition advice. Part of their service is to help their clients understand what they should be eating when training, including fruit and vegetables. They recommend us to their clients – and we’re looking to deliver directly to the gym once a week.”
“It’s about looking around and keeping your eyes open for opportunities. Be open to new ideas and talk to people to see if they’re interested.”
Social media has changed the way customers and businesses can share information and have conversations.
From online customer service to using social media to get insights from your audience, there are great opportunities for businesses to tap into Facebook, Twitter, LinkedIn and other networks. Which ones work for you will depend on your business, your audience and how you like to communicate.
7. Think big
If you are a small business, can you work with a large company? The simple answer is yes.
But many small companies find communication intimidating. Mike has had a variety of big clients, from Greggs to Kia, and he said it’s helpful to be close to the big companies.
“Our success with clients goes back to developing a long-term network. But small businesses now have more opportunities to work with large clients. I think that has changed since the credit crunch. Big companies may have been suspicious of small businesses in the past but now they see that they provide value and have lower costs. There is less prejudice now.”
8. Play to your strengths
It’s definitely worth testing a range of marketing methods and seeing what works. But remember that every business is different, so you may find that some methods don’t work. Don’t be afraid to throw these away.
9. Adapt as your business grows
It’s important to keep trying new ways to reach your audience and not automatically reject things that may not have worked in the past.
As your company is established, you can find your customers from different sources. That’s why it’s important to track your business statistics and finances.
“We are getting new customers in various places as the business has grown,” said Alice. “We’ve been going for almost two years and at first, it was through friends and family. Now we get people through word of mouth, advertising and going to markets. We also get people through Google and the website.”
10. Measure what works for you
As you try new methods, be sure to monitor where your customers are coming from and which sources provide the most value.
You can continue to refine your approach or increase activities that serve to grow your customer base further.
This article was originally published in October 2017 and has been updated for relevance.
