Move, and move fast. Earning the loyalty is in your hands.
Maintaining that loyalty needs to be of paramount importance and sincere.
The costs associated with maintaining clients, compared with developing new clients is a key piece of understanding you should factor in.
It is said that a 5 percent increase in customer retention can net well over 25 percent in profitability.
Remember, these clients may also feed an internal cycle of satisfaction in your organization, making your people happier and more satisfied, engendering positive interaction and thereby feeding that circle of positive interface.
Loyalty can beget supportive referrals and great word-of-mouth elevation of your services and/or products.
Profitability
With the stability of numerous clients should come profitability. With a consistent revenue stream that is well managed and built on a constant margin evaluated model, you should experience the reward of profit.
For the sake of brevity, I have to assume that you’ve instituted a clear business-based budget, wherein your margins are understood and defined. Your responsibility to overheads (bank, personnel, insurance, monthly costs, etc.) is the primary objective. Fluctuating costs need to be absorbed with some elasticity in your budget.
But over and above those expenditures is the main reason you’re in business: profit.
Investment & Empowerment
Now, what you do with that profit is the final segment of this discussion. It comes back to link with quality of product and service.
R&D – Investment in this all-important enterprise is essential in paving the road in front of you. This is the lifeblood of your enterprise if you’re a manufacturer. New products and new technologies advance your brand(s) and elevate your stature and capabilities.
What you start research on today won’t necessarily become product this year. Horizonal thinking is of the utmost necessity, and yet so many companies are guilty of not applying enough of the profit dollars to deep R&D. If the engineering staff is financially supported in their endeavors, chances are you’ll see impressive results.