Hanging on to your existing clients in a slow economy is an incredible challenge. You can provide the best product, customer care and price around, but if the customer doesn't have the budget for your services, you're out of luck, right? Maybe not. A little creativity can help you maintain your customer base even when budgets run tight.
Keep tabs on the financial well-being of your clients and customers
Watch for signs that your best customers may be facing financial hardship. Engage them in conversations where you ask about the state of their business, how well they're faring in the economy, and what their greatest challenges are. This positions you as a service provider who cares about your customers, and also helps you anticipate potential slowdowns in business.
Look for ways to make your company indispensible
When businesses get slow, they start examining their budgets line by line. The first things to get cut are "non-essential services," so you need to make sure the product or service you're providing is deemed a "necessity." Make sure your pricing is fair, your services are top-of-the-line and that you are consistently meeting deadlines and delivery dates.
Don't let contract renewal dates slide by
In a slow economy, it can be tempting to avoid the subject of contract renewal, simply because there's a thought process of, "If I bring it up, they might think about whether they can do without us." The bottom line is, you need the security of that contract renewal to maintain stability in your own business. Rather than avoid the contract talk, use it as an opportunity to cement your relationship and let the customer know how much you value their business.
Develop solutions before problems arise
Do you get a feeling that your customers may be floundering? Perhaps they're cutting back on your services, or laying people off internally. Once you get a sense that financial problems exist, be proactive in shoring up your relationship. Acknowledge that you know it's a tough financial time for everyone, and express your desire to be part of the solution. Look for ways you can save your customers money without putting your own business in financial jeopardy. Offer a temporary rate reduction if possible, or find ways to add extra value to the products or services you already provide. This lets customers know you are trying to work with them, rather than against them, and your attitude will make it hard for them to let you go even when finances become tight.
Propose compromise
If a customer or client lets you know they simply can't afford your services at the moment, look for win-win compromises. Propose a reduction, rather than elimination of services, or develop a more cost-effective way to do the job. Reduced business is better than no business.
Stay in touch
If a customer is truly floundering or even going out of business, there probably is no way to salvage the business relationship. Resist the urge to write the customer off completely. Stay in touch, ask for referrals and provide referrals where you can. Touch base every few months to inquire about how things are going without trying to push for a sale. The financial tides always turn, and if you've stayed in touch with clients and customers during the storm, they're likely to come back to you when the weather clears.
Perhaps the most important aspect of maintaining clients in a slow economy is your attitude as a business owner. Try not to take reduction in services personally. Remember, many others are in the same boat, and long-term economic recovery takes a collective attitude of cooperation and understanding.
Dave Archer is president and chief executive officer of Nevada's Center for Entrepreneurship and Technology. Contact him through ncet.org.
