Your customers are the lifeblood of your business. You exist to provide them with the products and services that fulfill their needs, and your success depends on how well you identify and meet those needs. But your customers are not a monolith.

Research shows that companies who prioritize customer experience generate 60% more profits, and that 76% of customers believe the customer service represents how your business values them. While you might struggle to compete against a big box store in terms of price, you can differentiate when it comes to the personal connection.

Get to Know Your Customers Buying Behaviors

Tracking the frequency, products, and size of customer purchases can give you insight into their behaviors. Whether you use a customized software program or an Excel spreadsheet, learning their buying behaviors can serve you well in several areas.

One, you’ll have the product in stock

Failing to have a product in stock when a customer needs it can send them online or down the street to a competitor. Robust data on ordering behavior combined with excellent inventory management keeps this from happening.

Two, reminders can spur purchases

Sephora is one business that excels at this. About three months after a customer purchases foundation, they’ll receive an email asking them if it’s time to restock. If you know that your client typically has a wax service performed every three months but they haven’t scheduled an appointment yet, send an email or text reminder.

Three, anticipating their needs builds trust

 When you demonstrate that you’re paying attention to your customers, anticipating their needs and making sure you can meet them, it builds trust. They’re more likely to overlook a one-time mistake if you have a history of delivering value.

Send More than Emails

A handwritten thank you note may seem old-fashioned, but it can have a big impact. Consider jotting a quick note and slipping it in the mail after a customer makes a large purchase, or if they return to your salon after a long absence.

If your business is service-based, look into appointment registration programs that send automatic text messages with appointment reminders. This will help ensure they make their appointment, cutting down on no-show’s, and many people appreciate the reminder.

Around the holidays, or to celebrate important milestones like a one year anniversary, consider sending a small gift.

Always use their first name, and train employees in store or who answer the phone to use names, as well.

Add an Incentive or VIP Program

Have you ever done the math on those free coffee punch cards? By the time you’ve purchased ten lattes for five dollars, you’ve spent $50. And that doesn’t count the occasional muffin or scone you might have picked up with your morning coffee.

If you operate a retail store, consider offering free gift wrapping during the holiday season. Host a VIP shopping night, perhaps with other local stores, and offer appetizers, drinks, and a special discount to invited customers.

Take a look at your business and identify areas where it would make the most sense to offer VIP perks - whether it’s a free coffee or a discount on their birthday. Keep an eye on your bottom line, and track the results, so that you’re not giving away too much. But a small gesture can go a long way to encourage loyalty and build repeat sales.

Use Multiple Channels to Communicate

Everyone has preferences when it comes to communication. Some people prefer to pick up the phone to resolve an issue, others will send a tweet or direct message on social media. It’s important to be accessible to your customers on multiple channels to maximize your reach.

Make an email address, phone number, and other modes of communication easy to find on your website. Don’t ask them to hunt for information. If you chose to have a social media presence for marketing, be aware that customers will use those channels to resolve issues and monitor both comments and messages.

Do Business with Your Customers

The term “if you scratch my back, I’ll scratch yours” can be useful in the business world. Do you need to print new brochures? Choose the print shop down the street that ordered their office chairs from your warehouse.

Doing business with your customers is a great way to build loyalty and support in your local community. Think about some of your regular purchases - whether it’s office supplies, retail stock, or snow shoveling - and look at your client list. Could a current customer fulfill those needs?

While in many cases you could click “buy” online and have the item delivered, spending a little time to identify ways you could do business with your customer is worth it in the long run.

Customer service can be a great way to differentiate yourself from the competition and provide greater value. It helps you build loyalty and increase sales. For many smaller businesses it’s one way that they can compete against larger competitors.

Try some of these tips and see how they work for you!

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Posted on March 19, 2021