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Repeat Business

These customer service tips are guaranteed to keep ’em coming back for more. 

To the ordinary entrepreneur, finalizing the sale is the completion of serving the customer’s needs. But for the pro, this is only the beginning. Closing the sale sets the stage for a relationship that, if properly managed, can be profitable for years to come. Repeat customers are the backbone of every successful business. Now that you know how to land customers, it’s time to learn how to keep them.

Building Customer Relationships
It’s tempting to concentrate on making new sales or pursuing bigger accounts. But paying attention to your existing customers, no matter how small they are, is equally essential. The secret to repeat business is following up in a way that has a positive effect on the customer.

Effective follow-up begins immediately after the sale, when you call the customer to say “thank you” and find out if he or she is pleased with your product or service. Beyond this, there are several effective ways to follow up that ensure your business is always in the customer’s mind.

  • Let customers know what you are doing for them. This can be in the form of a newsletter mailed to customers, or it can be more informal, such as a phone call. The key is to point out to customers the excellent service you are giving them. If you never mention it, customers may not notice. You are not being cocky. Just make a phone call to let them know they don’t have to worry because you handled the paperwork, called the attorney or double-checked the shipment—one less thing they have to do.
  • Write old customers personal, hand- written notes frequently. For example, if you run into an old customer, follow up with a note: “It was great seeing you at the CDC Christmas party. I will call you early in the new year to schedule a lunch.”
  • Keep it personal. Voice mail and e-mail make it easy to communicate, but the personal touch is lost. Don’t count these as legitimate follow-ups.
  • Remember special occasions. Send regular customers birthday, anniversary and holiday cards. Gifts are excellent follow-up tools, too. You don’t have to spend a fortune to show you care; use your creativity to come up with interesting gift ideas that tie into your business or your customer’s recent purchase.
  • Pass on information. If you read an article, see a new book or hear about an organization that a customer might be interested in, drop a note or make a quick call to let them know.
  • Consider follow-up calls as business development calls. When you talk to or visit old clients or customers, you’ll often find they have referrals to give you, which can lead to new business.

Customer Service
When you’re a one-person business, it’s easy to stay on top of your customers’ needs. But with employees, you add more links to the customer service chain—and create more potential for poor service.

That’s why creating a customer service policy and adhering to it is so important. Here are some steps you can take to ensure that your clients receive excellent service:

  • Put your customer service policy in writing. Every employee should know what the rules are and be ready to live up to them.
  • Establish support systems. Give employees clear instructions for gaining and maintaining service superiority.
  • Evaluate. Develop a measurement of customer service, and reward employees who practice it consistently.
  • Meet regularly to talk about improving service. Solicit ideas from employees—they are the ones who deal with customers most often.
  • Be friendly. Act on the knowledge that customers love being treated as individuals and being referred to by name.

Interacting With Customers
Principles of customer service are all well and good, but you need to put those principles into action with everything you do and say. There are certain “magic phrases” that customers want to hear from you and your staff. Make sure all your employees understand the importance of these key phrases:

  • “How can I help?” Customers want the opportunity to explain what they want and need. Too often, business owners feel the desire or the obligation to guess what customers need rather than listening first. By asking how you can help, you begin the dialogue on a positive note (you are helping, not selling).
  • “I can solve that problem.” Most customers are looking to buy solutions.
  • “I don’t know, but I’ll find out.” When confronted with a difficult question that requires research on your part, admit it. Few things ruin your credibility faster than trying to answer a question when you are unsure of all the facts. Savvy buyers may test you with a question they know you can’t answer, and then just sit quietly while you struggle to fake an answer.
  • “I will take responsibility.” Tell your customer you realize it’s your responsibility to ensure a satisfactory outcome to the transaction. Assure the customer you know what she expects and will deliver the product or service at the agreed-upon price. There will be no unexpected expenses or changes.
  • “I will keep you updated.” Even if your business is a cash-and-carry operation, it probably requires coordinating numerous events. Assure your customers they will be advised of the status of these events. The longer your lead time, the more important this is. The vendors customers trust most are those who keep them apprised of the situation.
  • Monday means Monday. Your clients are waiting to hear you say, “I deliver on time.” The supplier who consistently does so is a rarity and well-remembered. A due date that has been agreed upon is a promise that must be kept—to the day. 
  • “It will be just what you ordered.” It will not be “similar to,” and it will not be “better than” what was ordered. It will be exactly what was ordered. Even if you believe a substitute would be in the client’s best interests, that’s a topic for discussion, not something you decide on your own.
  • “The job will be complete.” Assure the customer there will be no waiting for a final piece or a last document. Never say you will be finished “except for...”
  • “I appreciate your business.” This means more than a simple “Thanks for the order.” Genuine appreciation involves follow-up calls, offering to answer questions, making sure everything is performing satisfactorily, and ascertaining that the original problem has been solved.

Neglecting any of these steps conveys the impression that you were interested in the person only until the sale was made. This leaves the buyer feeling deceived and used, and creates ill will and negative advertising for your company. Sincerely proving you care about your customers leads to recommendations...and repeat sales.

Excerpted from Entrepreneur magazine’s Start Your Own Business (Entrepreneur Press) by Rieva Lesonsky and the staff of Entrepreneur magazine.