Most times people think once you start a business as an entrepreneur you have a physical product to sell but that is not always the case as in with service based businesses.
It makes it kind of difficult to sell a product that people cannot see with their eyes or touch with their hands. Service based businesses are some of the most difficult businesses to profit from because they depend largely on retainers and referrals.
Some types of service based business are:
- Cleaning service
- Consulting / Coaching
- Hair-styling etc.
In these types of businesses, in order to retain your customers you need to be doing the following:
- Building a client database: Before you can retain your customers, you need to have a list of them. A lot of times entrepreneurs / business owners do not keep an actual database and then start rumpling through documents when they need to find a phone number or email address.
- Communicate with them: When you have customers that have signed up for your emails or done business with you in the past, send them periodic messages to tell them about your business progress, pictures of what you are doing etc. Sending a birthday message is also a good idea.
- Offer discounts: When you run a service based business, you need to treat your clients like gold. Meaning that from time to time you need to offer them discounts on your services to encourage patronage from them.
- Referral bonuses: Asides giving them discounts, encourage them to refer people to you and earn points or gift vouchers – Whichever works for the business at the time.
- Build products according to their needs: Once you start communicating with your clients, you will soon discover what related services they require from you. Pay attention to their conversations and needs and continue to provide them the services they require from you.
Do you run a service based business?
How are you currently retaining your customers? Let us know.