Customer service – the importance of your suppliers!

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How important are your key suppliers?

If they stop would your business stop too?

Don’t take your suppliers for granted. Believing that the supplier will always want your business may not be a reality. The fact is we are all dependent on each other to varying degrees and unless you have an unlimited source of suppliers you could find you business grinding to a halt due to a supply problem.

There is a better way! Get involved with your suppliers; understand their problems and work to find solutions that benefit all parties. Taking that approach moves them from being simply suppliers to Strategic Partners.

It is a major benefit for you to know your suppliers plans for the next 3 years

  • Do they include you?
  • Do they effect you?
  • Have you considered long term contracts?
  • Can they help you improve or reduce costs?
  • Is it a win-win relationship?

Risks!

It’s true that risks abound in business, and they can come from unforseen directions not only the obvious shifts in demand. It can also come from:

  • The economy
  • Industry
  • Competition
  • Key suppliers and
  • Clients

Traditional strategic planning includes the CEO and senior staff and occassionally all staff are invited to provide input. While it’s not possible to have any great influence over such things as the economy you can definitely broaden your sphere of influence and lessen your risk exposure beyond your immediate surroundings.

Strategic planning that includes:

  • All staff
  • Customers
  • Suppliers and
  • CEO and senior staff

Can deliver amazing outcomes:

  • more profitable
  • more credible
  • less expensive
  • Less risky

Never undervalue your relationships across the whole of the business.

Good working relationships with your suppliers can actually make the difference between a business succeeding or failing. For example, if your business has a cash flow problem but you have a good working relationship with your suppliers they will be more likely to work with you through it. Where as if your relationship is not strong they could take legal action leading to bankruptcy and closure.

We’re often so busy focusing on managing customer relationships and yet a great supplier relationship could even give your business a competitive edge with your customers.

Have you ever experienced a supply problem?

 

Customer Service – Why do satisfied customers defect?

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You’ve probably read the statistics on how around 96% of unhappy customers don’t complain. They just don’t come back.

Well it’s not just unhappy customers that you lose, we know from studies that “satisfied” customers also defect.

Why would a customer stop doing business with you if they are “satisfied”?

Because 93% of customers indicated that quality customer service was vital to maintaining brand loyalty. Source: Creative Strategies

We also know that only about 30% of customers are “totally” satisfied at any time, which means 70% are at risk.

Does that really matter?

It matters hugely to your bottom line. When a business focuses on getting new customers, it can result in taking their eye off the existing customers, leaving those that have already shown their willingness to spend with you somewhat disenchanted.

So how important are your existing customers?

Because the probability of getting business from a new customer is about 1 in 16 compared to 1 in 2 from existing customers it makes good sense to nurture and build walls around your current customers.

Existing customers are worth 8 times a new customer!

The Value of Existing Customers

The Value of Existing Customers

 

 

 

 

 

 

 

 

And guess what, they’re your only income stream. And yet, businesses tend to funnel most of their marketing spend and effort into generating new customers.

Business revenue is lost every day, not on quality or price, but from the customer experience.

The best business strategies are those built on better servicing existing customer needs. It also reinforces that fact that you care for your customers and that their business is important to you.

Always remember, your customer is your boss!?They determine if you keep your job or your business simply by who they decide to do business with.

If you want to know how improving customer retention by just 5% can increase profitability by anything from 25% to 80%, then have a look at our great information sheet on Customer Service

What do you do to build walls around your customers?

Customer Service – Mind the Gap

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Companies that make customer service a high priority see 12 times the return on sales than those companies with a low emphasis on service. Source; International Customer Service Association.

If great customer service is so good for business why isn’t there more of it? In many cases it’s simply that businesses don’t know what “good customer service” means to it’s customers.

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