Three Reasons Why Small Businesses Need Customer Relationship Management

Have you ever gone into a business to purchase a product or service and was treated as if you were disturbing the salesman as he leaned slothfully against the counter?  Have you ever gone to the woman at the cash register who totally ignored you as she held a conversation with her girlfriend in the next lane, as if you were invisible?   There is nothing like a customer spending money just to be mistreated.

A customer management program is necessary for any business for 3 reasons.  One reason is that a business’ profits increase as a result of investing in a program.  According to statistics from the US Consumer Affairs Department, obtaining new customers cost about 5 times more than retaining current customers.  A mere 5% increase in customer retention can increase a business’ profitability by 25% or more.   As the number of pleasant experiences increases, repeat business will escalate, and more money will be spent over time.

I’d like to illustrate my point by sharing an experience that I had recently.  I went to a drive thru restaurant and purchased a meal.  After sitting at the pick-up window for three minutes, I was told that my order was not ready and to park the car in a vacant parking spot ahead.  After ten minutes, I decide to go inside to see what the problem was since I had such a small order.  Much to my dismay, when I walked into the establishment, I saw teenagers giggling and playing.  As I walked to the counter, the laughter ceased and the cashier began making excuses about how they ran out of food containers.  It took 7 minutes for someone to go to the back of what seemed like a 1000 sq. ft. restaurant to find containers. As I looked around the restaurant, I could see that the other customers were annoyed as well, but said nothing.  After receiving the food, I called the phone number on the bottom of the receipt and left a voice mail message.   I called again the following day.  After explaining to the manager why she potentially lost about 5 clients in less than 15 minutes, she was very upset and yet grateful that I contacted her.  Due to a lack of employee engagement and customer service skills, this business’ profits were negatively impacted.  If this business owner had a customer management program, the store manager might have known much sooner that her customers were not satisfied.

The second reason is less stress.  Business owners and entrepreneurs wear many hats.  Therefore, having a customer management program makes it possible for entrepreneurs to focus on other important aspects of their business.  For entrepreneurs who don’t have an extra 45 minutes in their day to listen to a customer talk about the psychological issues of the family pet, a customer management program can assist you with providing an efficient method of dealing with your customers. The bonus is that you gain some valuable feedback that will assist you with your marketing strategy.  Customers are not an inconvenience but a vital part of the business.

The third reason is because without customers, a business simply cannot sustain itself.  Business is not just about getting sales.  The value proposition of the business must be evident before the first client materializes.  Value is customers using your products or service in addition to the level of service that they receive.  Customers not only desire quality goods and services.  They deserve to be treated respectfully and as a vital component of your business.

If you are interested in learning more about maintaining satisfied customers and how a customer relationship management program can assist you with your business, contact us at APT Pathways.   We are passionate about customers and your business receiving priceless benefits as a result of you investing in this service.   I or a member of my team will give you a free 30 minute consultation (valued at $250.00). 

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