Small Biz Survival

The small town and rural business resource

A row of small town shops

Regular Customers Form Your Base

By

Photo by Becky McCray.

Ask yourself:

  1. Who are your regular customers? What do they buy and why do they keep coming back?
  2. Who are the customers you no longer see? Why aren’t they returning?

Why is it important that you can answer these two questions? It’s simple. Regular customers form the base of your business. And customers who have left are key informants. Knowing why they left is knowing where you need to focus your efforts.

The loss of regular customers can have a substantial impact on your bottom line. That loss comes in three ways. First, you have the lifetime loss of sales. You may see only a $10 a week loss but that represents over $20,0000 in a lifetime.

The second loss is the cost of obtaining new customers to replace those who leave. It costs maybe $3-5 to keep a customer but at least $20 to obtain a new one.

The last, and greatest, loss though is losing the regular customers who are often your greatest ambassador. Their stories and testimonials are invaluable. And they do it often and are highly trusted within their networks and circles.

So it is to your advantage to be able to answer those first questions I asked. You probably have a great deal of this information already in your head, in your employee resource, and in your business records.

Once you have determined who is in each group, the hard work begins. Take the time to determine why some people stay and why the others have left. Today, social media offers a great resource to get some of this information. But having a conversation still remains key. Meet for coffee. Try some cold calling. Network.

Some of the most common reasons you will get as to why people leave include:

  • They found a competitor. If so, find out why they switched and what you need to do to get them back.
  • Your product or service was difficult to understand to make work.
  • Your product or service didn’t perform. And your customer service did not fix the situation.
  • Some may have forgotten about you. In today’s world of unending media and communication channels, your message has gotten lost. Keep your name in front of your customer.

It’s important that you take action; know your customers by staying in contact and listening; and keep your regulars aware of what is going on in your business.

Remember that your base is built on your regulars.

About Glenn Muske

Glenn Muske is an independent expert on rural small business, working as GM Consulting – Your partner in achieving small business success. He provides consulting, and writes articles for county extension agents and newspapers across North Dakota. Previously, he was the Rural and Agribusiness Enterprise Development Specialist at the North Dakota State University Extension Service – Center for Community Vitality.

Wondering what is and is not allowed in the comments?
Or how to get a nifty photo beside your name?
Check our commenting policy.
Use your real name, not a business name.


Don't see the comment form?
Comments are automatically closed on older posts, but you can send me your comment via this contact form and I'll add it manually for you. Thanks!

Howdy!

Glad you dropped in to the rural and small town business blog, established in 2006.

We want you to feel at home, so please take our guided tour.

Meet our authors on the About page.

Have something to say? You can give us a holler on the contact form.

If you would like permission to re-use an article you've read here, please make a Reprint Request.

Want to search our past articles? Catch up with the latest stories? Browse through the categories? All the good stuff is on the Front Page.

Shop Local

Buy local buttonReady to set up a shop local campaign in your small town? You'll need a guide who understands how we're different and what really works: Shop Local Campaigns for Small Towns.

Best of Small Biz Survival

More of the best of Small Biz Survival