As a small business, it’s understandable to want to shout about your company to as many people as possible. And it’s easy to get caught up in the minutiae of cash flow and generating revenue at the expense of customer service.
But most entrepreneurs will have heard statistics about the expense of acquiring a new customer compared with retaining an existing one – studies estimate it can be between five and 25 times more expensive to bag a new customer. Research by Frederick Reichheld of Bain & Company suggests that increasing customer retention rates by 5% could in turn, increase your profits by between 25% and 95%.
Not only is it human decency, then, to treat loyal customers well; nurturing these existing relationships can significantly boost your bottom line.
Our relationship has evolved because of what we’ve been through together
Working together through hard times can create strong, long-lasting business partnerships if they’re approached in the right way. Alex Pearce is the managing director of organic fruit and veg wholesaler Langridge Organic, and has been doing business with Andreas Georghiou (who runs a greengrocers in Chelsea, London), for nearly 20 years.
“Andreas started buying organic fruit and veg from us when we moved into a new unit in Covent Garden in May 1997,” Pearce says. “Our relationship is very friendly and has evolved over the years because of what we’ve been through together. 2009 to 2012 were tough years for many in business and neither Andreas or I escaped that. Open and honest conversations about what was happening enabled us to get through that period and build trust and loyalty.”
Georghiou agrees: “I believe the best relationships are born of friendship and this is certainly the case between us. Langridge Organic keeps me abreast of seasonal changes and puts up with my demands, which often border on diva-like as we have such high standards.
“We’ve had our ups and downs, which has given us a mutual understanding and solidarity in an often unforgiving industry. Now, we can ask each other advice, exchange ideas and work together on business growth without the negativity often found in our business sector.”
It’s a partnership that has also helped Pearce grow his business with other customers too. “It’s great having loyal, long-term customers like Andreas who keep you on your toes and are the first to let you know if you’re doing anything wrong,” he says. “We’ve seen a resurgence of traditional greengrocers in London over the last few years and working with Andreas has given us a better understanding of what this type of business needs.”
They inspire me every day
Mum of two and founder of Zara Cakes in Prestwich, Greater Manchester, Zara Neild says it’s her children – Jacob, aged 10, and Isobella, aged seven – who have always been her most loyal customers.
“Isobella helps me with the creative side of things, such as making cake toppers and she loves grating the carrots for carrot cake,” Neild says. “While Jacob is more interested in the business side and helps with social media. He’s also my personal assistant when we deliver the cakes.”
Neild explains that her children are at the heart of her business. It began in their tiny kitchen at home, with flour everywhere and multiple failed attempts coming out of the oven. When she signed a lease on the shop in 2010, it was chosen because there was a flat upstairs where the family could live.
“When we lived at the shop, Jacob had cake for breakfast lunch and dinner,” Neild laughs. “He’s a bit fed up of them now.
“My children are my rock and have been with me every step of the way in developing my business – at my highest and lowest points,” she adds. “They inspire me every day and have pushed me through hard times. It makes me proud to see how proud they are of me.”
Both Jacob and Isobella have been inspired by their mum too – Jacob hopes to start his own business one day (although he doesn’t know what it will be yet), and Isobella wants to be a cake maker when she’s older.
Her feedback has been priceless and her support essential
Hollie Grant is a pilates instructor and personal trainer who runs Pilates PT in London. She has worked with Sarah Clevely, a composer, music theory teacher and charity volunteer for more than five years.
Over time, Grant and Clevely have spent more time together – socially and in their twice weekly one-to-one sessions.
“Sarah is the dream client,” Grant says. “[We] got on well from the start, but our relationship changed when her sessions became one-on-one. She can talk more openly about the way her irritable bowel syndrome (IBS) and vertigo effect her energy levels and I tailor her sessions to how she’s feeling.”
“I’ve stuck with her because she’s an excellent teacher and a truly lovely lady,” Clevely says about the years she’s worked with Grant. “She’s passionate about Pilates and health and I love that she focuses on being healthy, fit and strong rather than being a certain size or weight. She’s sympathetic and caring but also pushes and encourages me to achieve my goals.”
Clevely has given Grant an insight into improving her business too: “Training her for five years has also encouraged me to keep adapting the Model Method to challenge her. She’s kept me on my toes, her feedback has been priceless and her support essential.”
The feeling is mutual. “I have a lot of respect for her as a teacher and as a friend,” Clevely adds. “I’ll train with her for as long as she’ll have me.”
There is a direct link between customer experience and brand loyalty
While most business owners can’t afford to treat their loyal customers to a holiday, that’s exactly what Kia does each year. Alex Badley, a consultant from Wales who specialises in clean tech energy, was one of 2016’s lucky winners of a trip to Seoul in South Korea.
“You can tell that I love my Kia cars,” Badley says, adding that he has owned five since 2009. “So imagine my surprise when I received a VIP invitation to visit the factory in Seoul South Korea. My Friend Steve assured me it was a hoax. ‘Car manufacturers just don’t treat their customers like that. They are just trying to clone our passports,’ he said. But what a trip it was.”
David Hart, customer experience manager for Kia Motors says looking after your customers can pay off when it comes to repeat purchases: “There is a direct link between customer experience and brand loyalty, so it’s really important to look after our existing customers. We want them to have the best experience when buying or servicing their cars so they automatically make their next purchase a Kia.”
When asked about why he has favoured KIA cars for so long, Badley says: “Every one I’ve owned has been ultra reliable – they’re very well engineered cars,” he says. “The seven-year warranty is also a huge bonus [and they have] excellent customer service.”
Hart adds that the company ethos has been coined “family like care”: “We want to treat our customers as if they were personal friends or members of our own family ... It comes down to listening to what your customers want and then providing a service to meet, and hopefully exceed those expectations.”
Content on this page is paid for and produced to a brief agreed with Kia Fleet, sponsor of the Guardian Small Business Network Accessing Expertise hub.
