There are certain clichés in business that are dubious in their truth, such as “the customer is always right.” But one that is undoubtedly true is that it is cheaper to keep an old customer than to find a new one. With this in mind let’s look at some of the most detrimental errors small businesses make in this arena:

1) Ignore Your Customers. This cardinal sin can be achieved in person, on the phone, and even over the Internet. Many retail companies adopt a “10 Foot Rule” that requires customers to be acknowledged if the employee is within ten feet of them. Greeters at the door are not only good for Wal-Mart, and acknowledging customers by answering phones quickly and with a smile is just good business.

2) Make it Difficult to do Business With You. Customers shouldn’t have to work at giving you their money. And they shouldn’t have a fight on their hands if they need to return your product or are unhappy with your service. If you make it hard on your customers someone else is always willing to go the extra mile for them.

3) Display a Lack of Integrity. Whether this is simply staff making excuses for poor service or products, or engaging in sales or marketing practices that can be perceived as deceptive, being a trusted and reliable business is an absolute essential. No one likes to feel lied to or treated in a way that is less than honest.

4) Become Dull and Predictable. This doesn’t mean sacrificing reliability and standards of quality and excellence, but customers expect innovation. And people being people, they are stirred by positive surprise and delight – just because your business has been around for fifty years doesn’t mean it has to look and act like it.

5) Don’t Listen to Your Customers. We live in an age where product and company reviews are being posted for posterity across the Internet, and perhaps on your company’s own website. Therefore, it is critical for you to hear what your customers are saying and respond. This can also mean reviewing relevant blogs, performing regular market research and simply talking to your customers.

One of my clients recently began conducting educational seminars for her clients with the stated goal of providing valuable information as a “bonus” to her normal services. However, in the Q&A portion of the presentation she turns the tables on her audience by asking them key questions with intent of ferreting out the issues and concerns of her clients that she might not ever hear otherwise.

Another E-Myth client regularly meets with his entire staff to discuss customer questions, tips and best practices, and to elicit ideas for innovations and improvements to their services and products. The synergy of bringing together the “frontline” employees with the management team with a focus on their customers works to create an atmosphere and company culture that is customer-centric and service oriented.

Source: E-Myth Mastery