Okay you have been in business for a while and now you’re ready to grow.
Ask yourself two very important growth questions:
- What do you want to grow and,
- How do you want to grow it?
If you don’t know what you want to grow and why you want to grow it, you could be traveling down a very dangerous path. Here’s the story of a client that wanted to grow their customer base to generate profits but, did not consider the second growth question.
The client started offering services and products at a reduced rate to their current customers and offered special bonus incentives to all new customers. The growth plan worked great for two months. At the end of the second month the client decided to raise the prices for the upcoming month without notifying any of the customers. During the third month the client had a 72% drop in sales.
Along with the decrease in sales:
- There were numerous customer complaints.
- Bad reviews by the customers about the price increase were posted online and on social media.
- The negative backlash of the price increase was so difficult that two employees quit because of the pressure from the angry customers.
It was at this point that the client contacted us to intervene and stop the bleeding. During their discovery meeting we identified that the client had not:
- Conducted any marketing analysis.
- Did not train their employees on the new sales systems.
- Had not communicated the price increase to customers in advance.
- Did not offer loyalty incentives to their current customers.
As a result when the prices were raised none of the employees knew what to say to the customers who were enraged at the price increase. The customers felt jilted and the business lost its creditability. This miscommunication and poor market execution cost our client:
- 85% of their loyal customers.
- 2 employees.
- 72% loss in sales.
Here is what we did to resolve the issue. We call this process growing by going:
- We used market analysis to set the prices at a competitive rate.
- Next we launched a loyalty program for the customers that remained and then mailed them a hand written note from the owner thanking them for their loyalty. As well as a membership card for product and service discounts.
- We retrained the employees on sales, customer services, effective communication and conflict resolution.
- In the event of a price increase our client sends notifications to all loyalty customers in advance of the increase.
- Customer surveys are emailed to clients quarterly to generate ongoing feedback to ensure customer satisfaction.
- Customers and employees also vote for the employee and customer of the month.
The benefit of growing by going is that you can experience growth when you go the extra mile. When you implement this strategy into your business, customers and employees feel valued and it creates long-term loyalty.
Want to use the growing by going process in your business contact us today to get started.