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How To Woo Existing Customers

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Retaining existing customers is far easier, and much less costly, than looking for new customers. But so many businesses believe the exact opposite. Too many businesses spend precious resources focusing on finding new customers as the driver of their business growth.

Consequently, the business can become obsessed with appealing to potential customers who they have never dealt with before. But, what about their existing customers? Is it just assumed that once a person becomes a customer, they will remain a customer? This is one of the biggest assumption mistakes that a business owner can make.

So, how do you ensure that the customers you already have continue to make repeat purchases? How do you get your existing customers to buy more from you?

It’s about making sure your existing customer base remains happy, loyal, and content with the services that you provide. And in particular, it is about ensuring that you focus on looking after the 20 percent of your customer base that will account for 80 percent of your sales – this is Pareto’s 80/20 principle at work.

Examples of this principle: 80 percent of your stock will come from 20 percent of your suppliers, 80 percent of your sales will be generated by 20 percent of your sales staff, 20 percent of your staff will cause 80 percent of your problems, and another 20 percent of your staff will provide 80 percent of your production.

After you have closed prospects who now become part of your customer base, the goal is to give these customers a positive experience that keeps you and your product or service at the top of their mind. You want to turn them into raving fans.

So, how do you accomplish this feat? Well, your goal should be to have frequent interaction with customers, so that when the time arrives for them to buy your product again, they will think about you and your business before any other entity. By doing this you start to add value for your customer that your competitors do not. This value is often what sets you apart and stops your competitors from moving in on your key customers. Remember, it is always easier for your competitors to steal your market share rather than try to find a new customer who has never purchased that type of product before.

A number of market surveys in retail categories have shown that customers leave their relationship with the retailer because of the following:

§  1 percent: death

§  3 percent: change residence

§  5 percent: buy from a “friend”

§  9 percent: product/service is sold by a competitor

§  14 percent: don’t need the product anymore/retailer doesn’t have the product at the “right” price

§  68 percent: perceived indifference


Did you get that? INDIFFERENCE.

Providing good customer service is building a relationship, and relationships require communication. Good customer service is proactive, so don’t wait until there is a problem to start taking care of your customers. And take positive steps to prevent perceived indifference from developing.

What are some specific actions that you can take to provide a competitive advantage with great customer service?

Start by always providing consistency of service, make it easy to buy, and add a WOW factor. This means making sure you know what standards you are setting, what makes people talk about you, what makes people look forward to doing business with you, what makes people tell others about your business.

Send personalized “thank you” notes as one of the most powerful ways to create a point of difference by saying “thank you for your business.” Less than 2 percent of businesses ever say thank you in a written format. Think about your last five major purchases; did you get a written note to say thank you for making that purchase? A written note will set you apart and your customers will not only look forward to coming back but they will also rave about your service.

Remember that the customer is always right, except when the customer is wrong. So many people think that they have to succumb to a customer’s every whim as they are frightened to upset the relationship. This is not necessarily true. Customers are people and if you give people the opportunity to be fair-minded, they generally will be. You must always “level” with the customer and if you are unable to provide the product or service under the terms being demanded by the customer, provide them with the honest answer and tell them the best terms you can offer that will be fair to both parties. It is the same when a customer complains; don’t try to cover it up or get down on your knees. Give customers the benefit of the doubt and give them the chance to be reasonable.

If you made a mistake, acknowledge the mistake and ask what you can do to make the customer feel better. You will save 95 percent of unhappy customers just by taking that action. If customers complain about an unjust cause, you need to be straight with them. Don’t just give in under these circumstances or they will expect that from you every time. For example, you could say, “My customers are happy to pay that because they feel I provide value. Is there some way in which you feel I can do a better job for you?” This opens up the opportunity for a mutual discussion in a fair way to retain long-term respect from the customer through honesty.

Provide opportunities for special treatment of your customers, particularly your A-List customers, the top 20 percent. For example, if you are about to launch a new product or update some of your product range, then let these special customers know in advance rather than find out through public media advertising. It is a way to continue to educate your customers about the benefit of your products and you may also provide an offer to purchase or try the product before it is released to the public. Another opportunity is to contact your customers at times relating to the history of the product or service. It could be that you contact them about 12 months after their purchase to give them an update on your business or simply to check that everything is going well with the product they purchased.

You may want to let customers know that the product is just about to come off warranty and offer to check the product for them. At this point of contact, it may be an opportunity to offer some type of special up selling offer for an extended warranty or maintenance agreement – an added value in your customer servicing.

Deliver your product with a special gift or do something that is completely unexpected by the customer. This is the most fun and can be the most effective in customer service. Give people the unexpected and they will be pleasantly surprised. It doesn’t need to be elaborate – it is the unexpected that will create a positive relationship benefit.

Make sure you identify your “moments of truth” in customer service. What are the times when it really counts to impress with your customer service? Every time you meet or have contact!



ActionCOACH, the world’s largest business coaching firm, was established and founded in Brisbane, Australia by Brad Sugars in 1993 when the concept of business coaching was still in its infancy. Since franchising the company in 1997, ActionCOACH has grown to more than 1000 business coaching franchises operating in more than 60 countries. ActionCOACH specializes in coaching small to medium sized businesses as well as executive teams and group coaching. ActionCOACH maintains its growth and strategic alliances by continual development of cutting-edge innovative technology, proven business processes and systems to add value, satisfaction and additional income streams for its franchisees.