David Klingenfuss has brought a lot of attention to the electrical contracting business and to the role of electrical workers over the past few months, giving people timely advice about starting and running their own contracting businesses.
As an independent business owner in the Bay Area, and having worked as an electrician for the past three decades, David aims to help people run and scale successful service businesses.
His tips and tricks that have appeared in Yahoo Finance, the London Post UK and The American Reporter are helpful to more than just electricians, but to entrepreneurs and all business owners alike.
In today’s post, we’re going to examine one of the most important elements that contributed to David’s success – his ability to make customers happy and retain them.
David has a rule that he will always put a customer first even if it’s not the easiest thing to do. In fact, consistently putting customers first in business is harder than it sounds, especially when you are dealing with the many moving parts and daily operations of a business.
Dealing with customers regularly also means dealing with many different personalities and it takes social intelligence, empathy and discipline to do things well consistently.
When you treat your customers well, you’re likely to get new referrals and retain their services for longer. You also increase your chances of doing repeat business with them. The bottom line is: the better you treat your customers, the better your retention and revenue.
HubSpot outlined a few reasons why customer retention is one of the most important factors of running a successful business.
The first reason is affordability. It can be 5 to 25 times more expensive to acquire a new customer than to retain a customer you already have.
It is also important to note the benefits of even a slight increase in customer retention. As little as a 5 percent increase in customer retention can increase company revenue by 25 – 95 percent.
Customers that have purchased your services before are far more likely to buy again. They develop loyalty, buy and spend more than new customers. Once they value your service, they will keep coming back again and again.
When customers return to you for work, that’s also when they are likely to refer you to their friends, family and professional contacts.
You can increase your retention rate of customers by communicating results on a regular basis.
It’s much harder for a customer to say goodbye if you are delivering results consistently. These don’t need to be quantifiable metrics – they can be as simple as a beautiful light fixture that you installed and a before and after photo so the customer can see the results.
For more information about David Klingenfuss, including links to his other interviews that outline his best customer retention strategies, you can visit his website here.