Why you must focus on your existing customers

Although it costs more to gain a new customer than it does to retain an existing one, many small firms fail to place any importance on customer retention. Rosie Beasley explains how to do it. It’s likely that most businesses feel that they already offer a good level of customer service and therefore can concentrate their time and energy on new business generating activities. However, satisfying the needs of customers isn’t just about being polite to them on the telephone or getting back to them promptly. A business needs to go the extra mile and exceed customer expectations in order to be competitive. Customers are much less loyal during an economic downturn as they look for the best deals around. A small firm can no longer rely on loyalty as a customer retention tactic.