Acquiring new clients, while vitally important, is not as important as retaining existing clients. At the heart of any strategy to retain clients is knowing your customer (KYC). For without an in-depth knowledge of what your customers want and need, acquiring new customers may be in vain. And in the rapidly changing technological era, there is no hiding place; your business is only as good as your last negative review in social media.
But marketing is arguably more difficult today. The current competitor set is highly concentrated compared with what it was even a decade ago. You need to get out there and discover who your clients are and what makes them tick.
Demographics, psychographics, dynamics; these are the building blocks of creating the persona of customers. It takes time and is not easy. But time spent on analyzing customer profiles will pay big dividends in the future.
Accessing relief funding to cope with Covid-19 is fraught with difficulties. Only a tiny fraction of the package announced by government at the start of the pandemic has been advanced into the economy.
There is an urgent need to remove the requirements of personal surety as well as other restrictions. The easier banks make it for consumers to access this credit, the more readily they will ask for it.
And lastly, never forget that almost 95% of businesses fail to sell when the time comes to exit, despite all the hard work and money that has gone into them over the years. By following a proven set of principles, it should be possible for most businesses to establish an asset of value. An asset that truly reflects all the effort that went into the business over the years.
By Chris Gilmour in Are you building an Asset of Value?