Every business is different. This is not news. Every company has different needs, different goals, different structures and rules. The one thing every business has in common, no matter how big, how new or how well known, is the need for customers.
Without customers, your business will crash and burn. Without customers your company will never grow and develop into an industry leader. This common denominator stands true for all businesses, but especially for wholesale distributors who are likely to have larger customers, where the loss of even a small number of customers can have a tremendous impact on your bottom line. It is because customers are so crucial to a business, that when a customer stops buying from you, it is a huge deal. While gaining new customers is always important, it is just as, if not more, important to retain your existing customers.
In this 3 part blog series, I would like to go over this idea of retaining existing customers and what to do if you do lose a current customer. In this first installment of the series I would like to discuss the importance of customers and why there is a real need to be able to identify lost customers quickly and efficiently. Below are just a few reasons why knowing which customers have stopped buying and being able to quickly recognize when they’ve stopped buying is so important:
The good news is you don’t have to struggle with a system that doesn’t identify those lost customers quickly. I am very familiar with an inventory reporting tool that helps you quickly identify customers who have stopped buying from you, rank the impact of that loss based on their sales history, as well as identify all of the items that they bought. This knowledge will allow you to adjust your inventory and your business strategy. Customers are the backbone of your business. I like this quote from Will Henry, “The wishbone will never replace the backbone.” Don’t just “wish” you hadn’t lost those customers, take action to learn from the experience and reach out to those customers, learn about their problem, and possibly win them back!