Every day you open the front doors and welcome new customers, along with your longtime partners. But are you doing what it takes to keep most of them from slipping out the "back door" and going off to a competitor? The key to success isn't just finding new customers, it's getting the most from the relationships you've already established, and hanging on to your good business partners. The rule of thumb that says it's easier to gain additional sales from an existing customer than it is to find and develop a new one is very true.
It wasn't long ago that the golf industry was proclaiming it needed to "open a new golf course every day for the next 10 years just to keep pace with demand." Now, fewer than a half dozen years later, courses are closing and being turned into housing developments. After a few years of frantic expansion, the business of golf realized it was losing more players each year than it was gaining. Headlines proclaimed "3 Million New Players..." but it took awhile for the industry to realize that 4 million people sold their clubs in favor of something else in the same year. There was excitement at the front door, but too many people were leaking out the back door. Caught up in technology and hype, the business has suffered because nobody was taking care of the people it needed to succeed.
Business at every level revolves around people, and the relationships you build and keep. Those relationships start in your own shop, with your employees. If your staff is happy and energetic, that enthusiasm carries over when your customers, and vendors, come in. People look forward to going into a shop or meeting with representatives of a company that treats them well and makes them feel welcome. Think of your own shopping habits. Do you go back to a place where the staff makes you feel like you've interrupted their day? Or, do you frequent stores where the staff acts as if it was hoping you'd drop in?
Few have so little competition they can take a "why are you bothering me" attitude. And on the professional side of this business, there aren't that many customers so, unlike dealing with John Q. Public, you can't count on a new flock of buyers replacing those who feel mistreated.
We're devoting an increasing amount of space in Construction Distribution to providing ideas and insights on how to build on your customer relationships, make the most of your people resources and be more profitable. If you'd like to see something on a specific business-oriented topic, let us know, and send your ideas to butch.horn@cygnusb2b.com .
In the meantime, welcome your business partners — your best customers and key vendors — in the front door with open arms; while making sure the back door is firmly bolted so none of them even think about looking elsewhere.
— A.D. "Butch" Horn
butch.horn@cygnuspub.com
www.constructiondist.com
P. S. Would you like to keep up with what's happening in this dynamic industry via an electronic newsletter sent directly to your email address every month? We've kicked off Construction Distribution's Industry Update with a premier issue in May — many of you have already seen it. If you didn't get it, go to www.constructiondist.com and sign up...and while you're there, re-up for another year of CD, too!