Using all your marketing and sales skills to entice new customers to your product line or service is a necessary first step toward the long-term success of your business. But it is only a first step. With few exceptions, most businesses must also rely on repeat sales from returning customers to fully exploit the potential of an ongoing income stream.

The formula for converting a first-time customer into a repeat customer is simple: Support, Support, Support! Your goal should be to develop a relationship with your customers. No matter how many customers you have, each one should feel as though you are genuinely concerned with their satisfaction.

Effective customer support is not just about resolving any problems that may come up, although that component is absolutely crucial. Successful entrepreneurs utilize the full set of methodologies that comprise Customer Relationship Management (CRM). CRM should be employed at every step of the process: sales, after-sale support, problem resolution, and follow-up.

Support should start even before a sale is complete. Very often, customers will be considering your product or service over those offered by your competitors. When you receive a telephone or email query asking for additional information about the product/service you offer, it is vitally important to respond to that query as soon as possible. Keep in mind, when a potential customer asks these questions, the response you provide is the first indication they get as to what kind of support you will provide. Answer their questions fully and honestly. Furthermore, always let that potential customer know you are there for them by ending your response with a statement such as "please feel free to contact us if you have any additional questions".

It's also important to fully understand what your customer requires. Don't just sell them something because you have it in stock or it is an item that gives you your highest rate of return. You need to think long term. Let me offer an example from my current business.

My company, webhosting-123, offers three levels of shared hosting service: economy, deluxe and premium. Obviously, my profit margin on the deluxe or premium hosting is greater than the economy plan. However, if the economy plan fully meets a customer's requirements, that is what I recommend. I may make a little less in profit, but I gain a happy customer. My experience with other successful businesses taught me that one of the greatest assets you can have is positive "word of mouth". People share both their positive and negative experiences with others: just look at the discussion threads in the various Forums.

When someone posts a comment about your business or product in a forum, which would you rather see: "the XYZ company really helped me figure out what I needed", or "these jerks just wanted to sell me their highest cost product"? I cannot stress this enough: word of mouth can either be a tremendous boost to your business, or it can be a killer.

Once you've made the sale, don't ignore the impact of ongoing support. While you don't want to flood anyone's email inbox with spam, an occasional after sales message such as "how are things going" or "let us know if we can be of further assistance" lets your customers know you are there for them.

When problems crop up, and they always do, finding a quick resolution to the problem is absolutely crucial. Consider your own experiences with support issues. What kind of company are you more likely to return to for additional purchases? One that has resolved any potential issues quickly and professionally, or one where the support person seemed disinterested?

One of the many pearls of wisdom my dad imparted to me goes like this: "son", he would say, "there are only two ways to argue with a woman". "Neither one works".

His point, of course, was that whether you are right or wrong, you are going to come out on the losing side. Arguing with your customers presents the same kind of situation. Even if you are right, you can wind up losing your customer. Never argue with a customer, and never be belligerent. The "Soup Nazi" episode on Seinfeld a number of years ago was a great comedy bit. But in real life, it's a disastrous way to run a business.

Another consideration to keep in mind is that in the vast majority of cases, you know more about your product or service than your customers. There's a great story that goes around about some of the support questions received by a major computer manufacturer. In one such story, a woman calls support to say she has gotten her new PC set up, but she is unsure about the purpose of the foot pedal. The support person, somewhat dumbfounded, asks her, "what foot pedal mam?" The woman responds, "you know they small oval thingy with the two switches and the long cord".

She was, of course, talking about the mouse. No one knows if this is a true story or not, but it does illustrate my point. You can most likely expect some really dumb questions on occasion, especially if your product is technical in nature, but never make the customer feel dumb. Never laugh at a customer. When you do have to deal with the inevitable problems, utilize proper CRM techniques:

1) Respond to telephone messages or email as soon as possible. No customer is ever happy about unreturned calls or emails.

2) Always be polite and courteous.

3) Tell your customer "we will help you resolve this issue", and MEAN IT!

4) Keep in mind your customer is frustrated. Let them rant if they must; we've all been there.

5) ACCEPT THE RESPONSIBILITY to "FIX IT"!!

6) If you don't immediately know the answer to a problem, tell your customer you will research it fully and get back to them. And then DO IT!

7) Never tell your customer they are wrong, even when they are. Patiently walk them through what needs to be done.

8) Keep your ego out of the conversation. It's not about you; it's about making your customer happy.

9) Once the problem is resolved, make a follow-up call or send an email a few days later to make sure the customer is satisfied.

There are two additional techniques I would recommend. First, have a formalized customer support policy. Put this in writing and always have it nearby; we all need reminders. Second, once the problem is resolved ask your customer if they would be willing to complete a short satisfaction survey. You can gain valuable information from such surveys. Take the responses to heart and make adjustments in your CRM policy if they are warranted.

Once a sale is made, and any problem resolved, it is to your advantage to occasionally keep in contact with your customers. One of the best ways to accomplish this is to set up a mailing list. You want to make sure this is a double opt-in type list, as not all your customers will want to receive emails. But give them the option.

Your mailing list serves several functions. First, it provides you with a means to remind customers about your products and services. It also allows you to continue your branding and image marketing strategy.

On the other hand, your list shouldn't always be about sales. Using the list for an occasional information newsletter is a good way to let customers know they are part of "your family". In my case with my previous businesses, I would send out a newsletter every few months describing new advancements in PC technology. I currently do the same thing with Webhosting-123 by writing short articles about topics such as SEO, web design, and so on. On the other hand, don't overdo it. A newsletter or email communication once every month or two is adequate.

One other technique I have used is to occasionally send out snail mail postcards to some of my more frequent customers. I often did this at Christmas. I would have 100 "Holiday Cards" printed and sent them to my best customers. It cost $40-$50 for printing and postage, but the expense was well worth it.

I also made it a point to remember special occasions in the lives of my customers. Often, when you speak with a customer on the phone or exchange emails, topics outside of business come up. For instance, a customer might mention that a son or daughter was really excited about soccer. The next time I spoke with, or emailed, that customer, I would ask, "how's the soccer coming along?" The impact of the "personal touch" just can't be overstated.

Remember, your customers are your lifeblood. Your goal should be to establish a long-term relationship with them. If you take care of them, they will take care of you. That is what CRM is all about.

Ray has a 30+ career in the Computer (IT) field. He has been a Systems Analyst, DB and Network Administrator, Website Project Manager, IT Architect and Director of IT. Ray has run a number of successful online businesses. He is also the author of several books.

http://www.imadspace.com
http://www.webhosting-123.com