You know that growth is essential to the success of your business. But you also know that growth can be hard.
Be encouraged – You’re not alone in feeling this way!
Why is Growth So Difficult to Sustain?
According to the U.S. Chamber of Commerce, the average business in the U.S. loses around 50% of its customer base every five years, and the likelihood of selling to a new customer is only 5-20%.
This may be why achieving growth may feel like a losing battle… but all is not lost!
The U.S. Small Business Administration reports that companies are four times more likely to do business with an existing customer than a new customer, and the likelihood of selling to an existing customer is 60-70%!
Knowing how to make that first sale is key to getting each of your customers started off on the right foot. The successful retention of your customers starts at the initial contact. However, the sustainable growth of your business is then found by maintaining that relationship throughout the lifetime of that customer.
People, Not Processes
Years ago, a repeatable system simply meant that companies could provide their salespeople with the same generalized talking points to use on every cold call or first meeting with a potential customer. Today, however – thanks to the easy accessibility of information via the Internet – your customers are typically already well-versed in what you have to offer, long before they ever get on the phone or hop into an online chat with your customer service representatives.
But this doesn’t mean that they won’t still call or utilize a chat!
“In-person sales interactions aren’t going away and it’s that consultative touch that elevates both your sales force and your brand above the competition,” says Mediafly’s Tal Vinnik.
This means that one of the most important repeatable systems that you need to have in place to retain and grow your company perhaps isn’t a system, at all – it’s people!
… People who are trained to make decisions in the moment to best help move a customer forward.
… People who are solely focused on providing your customers predictable access to friendly, knowledgeable, helpful support.
… People who can ensure the satisfaction of your customers while you establish the proper performance of your sales systems.
Do you have those people in place?
Satisfied Customers Mean Sustainable Growth
If your focus is only on adding new customers, at the expense of servicing your existing customers, you may be missing out. The successful retention of your current customers through consistently professional processes and procedures can result in the thriving triumph or the epic failure of your business.
The U.S. Small Business Administration’s report goes on to say that just a 2% increase in customer retention can have the same effect as decreasing a company’s costs by 10%.
When your existing customers receive a reliably positive experience from your team, they are far less likely to start looking elsewhere to do business… which then means growth for you! The report puts it another way, “…reducing customer defection rates by just 5% could increase profitability by 25% to 130%, depending on the industry.”
Avoid Reinventing the Wheel
When you’re aiming at sustainable business growth, attempting to do everything yourself can be tempting. But the reality is, in order to ensure the proper structure of your most important functions, you should have at least one or two fully dedicated people focused on keeping your current customers well-serviced and satisfied with how you do business.
So, as you’re building your business and setting processes in place to sustain its growth, consider connecting with Huntsville Hub to strengthen your efforts. Our virtual office support, including receptionists and mail services, can help ensure a positive continued connection with your current customers and a professional first impression on potential new clients… doing it the right way, every time.