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Friday, 25th June 2021 | Management

Customer retention best practices for your small business

Retaining your customers, instead of only focusing on acquiring new ones, will save you money and make your business more profitable in the long run. Here are some top tips for retaining your customers.

It’s common knowledge that it costs less to keep customers than to acquire them, but have you ever put a price on it? According to research from Bain & Company, “a 5% increase in customer retention produces more than a 25% increase in profit.” This, they say, is because repeat customers are likely to spend more money with your brand over time. They are also likely to refer you new business. Put simply, investing in customer service to make sure your customers have consistently positive interactions is good for your bottom line. Read on for top tips on retaining your customers.

Maintain consistent business hours

One of the joys of owning your own small business is the flexibility and ability to manage your own schedule. However, unpredictable operating hours could be costing you. Your customers are busy too and wasting their time is a quick way to lose their business. Be consistent with your business hours so customers can plan to visit with confidence that you’re open.

Keep your website and Google My Business listing up to date

If your website lists out-of-stock merchandise, last year’s pricing, or services you no longer offer, your customers may well feel like they can’t trust your business. Make sure everything is up to date, including your hours or location, across platforms.

Offer online shopping or other options

Even though retail is reopening, many customers have become accustomed to shopping online. This doesn’t necessarily mean you have to sell your services or products online, but offering the flexibility of custom orders in cases where customers don’t feel comfortable returning in-store shows respect and thoughtfulness. Also, consider offering phone and email ordering with the option to pick it up or have it delivered. Seamless transactions that suit your customers' needs will go a long way to ensuring you get repeat business.

Communicate with your customers

Your website, social media, email, and even newsletters are all ways to communicate with your customers. Figure out which works best for your industry and reach out. Regular communication keeps your business top-of-mind, but make sure you don’t flood your base with overly frequent messages.

Train your employees around customer service

Think of your team as brand ambassadors—because that’s what they are. Your employees are the face of your business and how they interact with your customers will inform your reputation. Make sure your employees are trained to provide top-notch customer service.

Get personal

Nobody likes to feel like they’re just a number. Take the time to learn your customers’ names and a little about their lives. Encourage your employees to take time with your customers rather than rushing them to the till. A little human interaction goes a long way.

Reward loyalty

Loyalty programs can be as simple as a punch card or as complex as a multinational campaign. Giving your customers a little extra when they return is an effective way to keep them coming back, while showing your gratitude for their business. Points programs and discounts are easy-to-implement strategies that will make your customers feel valued.

Resolve issues quickly

Perhaps a product doesn’t work as intended or a service doesn’t meet expectations. Sometimes, despite your best efforts, things go wrong. These occasions are opportunities to deepen customer loyalty. If you can resolve the issue quickly to your customer’s satisfaction you’ll build trust with your customer so they feel confident enough to return next time.

Show gratitude

Many consumers have demonstrated their willingness to support small businesses, especially right now. Acknowledge that you appreciate them. A simple thank-you goes a long way and a grateful approach will help ensure your customers keep coming back.

So much of customer retention comes down to simple customer service. Follow these guidelines to give your customers a positive experience every time they interact with you. Your reputation and your bottom line will thank you for it.

5 Cost-Effective Strategies to Scale Your Canadian Small Business

Congratulations! You've built a thriving small business. But with success comes the exciting (and sometimes daunting) question: Is it time to grow? This guide explores the signs your business is ready for expansion and offers 5 cost-effective strategies to achieve it, all while keeping your finances in check.

Why Grow Your Business?

The definition of success varies greatly between businesses. Some prioritize revenue, while others focus on community impact. Regardless of your goals, a thriving small business is a strong indicator of potential for growth. Here are some key reasons to consider scaling your operations:

Demand: Are you struggling to meet increasing customer demand for your products or services? Expanding your capacity through additional staff or inventory can help.
Profit: Healthy profits allow you to reinvest in growth initiatives. Analyze your current profit margins to determine if expansion is financially viable.
Longevity: Many businesses strive for long-term success. Consider how growth will impact your business's sustainability and future potential.

Is Your Canadian Business Ready to Expand?

Here are some key factors to consider before taking the leap:

Growing Team: A growing team suggests your business is handling an increased workload. Hiring additional staff is a clear sign you're ready to handle more.
Unable to Meet Demand: Are you turning away customers due to limited capacity? If so, this indicates a need for expansion to capitalize on existing demand.
Abundant Cash and Financial Stability: While increased revenue is a positive sign, it's not the only factor. Analyze your overall financial health to ensure expansion won't strain your resources.
Meeting or Exceeding Business Goals: Surpassing your existing goals demonstrates a successful business model. Scaling your operations can help you achieve even greater success.
Too Much Space or Resources: Are you finding yourself with unused space or underutilized resources? This could be a sign you're ready to expand your product offerings or customer base.
Intuition: Sometimes, your gut feeling is the best indicator. Trust your instincts alongside the data if you feel strongly about scaling your business.

5 Cost-Effective Strategies to Grow Your Canadian Business

Growth doesn't have to break the bank. Here are 10 ways to achieve sustainable business expansion without overspending:

Start with a Growth Business Plan: Don't jump in blindly. Create a roadmap outlining your specific growth goals and strategies. Revisit your original business plan and adapt it to reflect your new ambitions.
Do Your Research: Educate yourself on Canadian industry trends and competitor strategies. Talk to other entrepreneurs who have successfully scaled their businesses. By gathering information, you can avoid costly mistakes and make informed decisions.
Nurture Your Existing Customers: Loyal customers are your most valuable asset. Prioritize excellent customer service and implement strategies to retain their business.
Leverage Social Media: Build a strong social media presence to connect with potential customers organically. Utilize free social media tools to create engaging content and interact with your audience.
Automate Tasks: Free up valuable time and resources by automating repetitive tasks. Explore cost-effective automation tools that streamline processes like scheduling, payroll, and data management.

Focus on What Matters Most: Growing Your Business

Running a Canadian small business requires dedication on many fronts. When it comes to growth, securing the right financing can be a major hurdle. At iCapital, we help you overcome this hurdle and free you to focus on what matters most: Growing your business.

iCapital: Fast Funding for Canadian Businesses

Get approved in 24 hours and fuel your growth with iCapital's streamlined financing solutions. Choose from flexible options like Term Loans, Recurring Term Loans, and Secured Business Loans – all with transparent fees. Apply online in minutes and get started today.

Small business financing Canada

iCapital Helping SMBs Weather Cash Flow Challenges

Unplugging for Success: How Small Business Owners Can Take a Well-Deserved Vacation

In the whirlwind of running a small business, taking a vacation might seem like a distant dream. However, it's precisely when you're in charge that you must prioritize your well-being and rejuvenate yourself. Planning a vacation isn't just about booking flights and accommodation; it's about ensuring your business can thrive in your absence and that you can return rejuvenated and ready to tackle new challenges. Let's delve into how small business owners can successfully unplug and enjoy a well-deserved break.

Planning for Success

Start by considering the best time of year for your getaway—ideally when projects are wrapping up, and sales are steady but not overwhelming. Tie up loose ends before you leave, pay bills in advance and update clients and suppliers about your absence. Provide them with contact information for someone who can assist them while you’re away.

Empowering Your Team

If you have a team, view your vacation as an opportunity for them to shine. Begin preparing them well in advance, gradually delegating more responsibilities as your departure date approaches. Offer detailed instructions for complex tasks and discuss potential scenarios they may encounter in your absence. This empowers your team and fosters a culture of trust and accountability within your business.

For entrepreneurs or sole proprietors without a team, automation can be a game-changer in maintaining business operations during your absence. Embrace the power of AI and automation tools to streamline processes and keep your business running smoothly. Consider utilizing answering services to handle customer inquiries and appointment bookings, allowing you to step away without compromising customer service. Automate bookkeeping and computer processes wherever possible, striking a balance between maintaining service levels and ensuring your business retains its personal touch.

Unplugging for True Relaxation

Strive to minimize contact with clients and staff while you’re away, allowing yourself a true break. Schedule occasional check-ins if necessary, but limit them to specific times and stick to the plan. Communicate with your staff about how they can reach you in case of emergencies, but otherwise, resist the urge to constantly check-in.

Returning Refreshed and Rejuvenated

Upon your return, keep your schedule clear for the first few days to catch up on missed tasks. Make a list of items requiring immediate attention to help you ease back into work seamlessly. Remember, taking a break allows your body to recharge, leading to increased productivity upon your return.

Embracing the Benefits of Vacation

If you’re still hesitant to take a vacation, consider the benefits it offers. Time away from work allows your mind and body to recharge, leading to increased productivity and creativity upon your return. Even short breaks can profoundly impact your overall well-being and business success.

Prioritizing self-care isn't just a luxury; it's a necessity for sustainable business growth. By planning strategically, empowering your team, and embracing the benefits of unplugging, you can enjoy a well-deserved vacation while ensuring your business continues to thrive in your absence. So book that trip and savour the opportunity to unwind and recharge. Your business—and your future self—will thank you for it.

Management

Springing Forward: Essential Marketing Tips for Small Businesses

As the world awakens from the slumber of winter, small businesses have an opportunity to tap into the vibrant energy of spring and breathe new life into their marketing strategies. Just as nature undergoes a transformation, so too can your marketing strategies. Spring presents a golden opportunity for you to refresh your approach and connect with your customers in meaningful ways. Here are six essential marketing tips tailored specifically for small businesses like yours as we transition into the season of growth:

Host Engaging Events:

Springtime calls for outdoor gatherings and community events that bring people together. From street fairs to garden parties, consider hosting events that showcase your brand and provide value to attendees. These events offer a unique opportunity for you to connect with your customers on a personal level, fostering relationships and building brand loyalty.

Refresh Your Branding:

Just as the world outside undergoes a transformation, consider giving your branding a fresh update. Infuse your website, social media profiles, and marketing materials with imagery and messaging that captures the spirit of the season. Whether it's incorporating vibrant colours or using nature-inspired themes, refreshing your branding can captivate your audience and make your brand stand out.

Offer Springtime Promotions:

Take advantage of the season to offer enticing promotions and discounts that resonate with your audience. Whether it's a spring sale, a limited-time offer, or a special promotion tied to seasonal activities, create a sense of urgency to encourage customers to take action. By aligning your promotions with the themes of spring, you can drive sales and attract new customers to your business.

Connect with Your Community:

Spring is a time for renewal and connection, making it the perfect opportunity for you to engage with your local community. Partner with other businesses or organizations to co-host events, sponsor local initiatives, or participate in community clean-up efforts. Demonstrating your commitment to your community can build goodwill and strengthen your brand's reputation.

Embrace Seasonal Content:

Spring offers a wealth of opportunities to create content that resonates with your audience. From tips for spring cleaning to ideas for outdoor activities, leverage the season to provide value to your customers through your blog, social media, and email newsletters. By sharing timely and relevant content, you can strengthen your relationship with your audience and position your brand as a trusted resource.

Track and Measure Results:

As you implement your spring marketing initiatives, be sure to track and measure their effectiveness. Use analytics tools to monitor key metrics such as website traffic, social media engagement, and sales performance. By analyzing the data, you can gain valuable insights into what's working and what's not, allowing you to refine your strategy and optimize your efforts for maximum impact.

Spring gives your small business an invaluable chance to revitalize your marketing endeavours and forge deeper connections with your customers. By integrating these essential marketing tips into your strategy, you can harness the vibrant energy of the season and position your business for growth and success in the months ahead. So let's seize the spirit of spring and spring forward together towards a bright and prosperous future for your business.

Marketing