Why Most Businesses Fail?
Acquiring new customers is the most important part of running a business. Growing your business relies on getting more customers and implementing a customer relationship marketing plan can help you do just that. It is the lifeblood of your business. If you’ve read the statistics, then you know that most businesses fail.
Michael Gerber author of “The eMyth” says that 80% of businesses fail in the first 5 years and about 80% of those remaining fail in the next 5 years. That is… 96% of all businesses fail within 10 years.
You may ask Why? Why are so many businesses failing within the first 10 years? There are many reasons, but if you asked most business owners who had a business that failed… What would have made a difference in their business? They would have said – “More customers… I did not have enough customers… had I had more customers my business would have survived”.
Now, we know that there is more to it than that, but nothing really happens in business until a customer buys. You can’t do anything with your business until you get someone to buy from you. Sure you have to figure out how to sell products, hire and train people, and many other things associated with setting up a business. But the main game is getting new prospects or referrals and then getting them to buy.
Most small businesses are faced now with the challenge of how do I get the most bang for my marketing and advertising dollars. How can I acquire more customers and increase sales with a limited budget. Most people would agree that internet marketing (if you have an online presence) and word-of-mouth referrals (if you serve a local area) is by far the most cost effective methods.
Word-of-mouth is very effective since your customers become your sales force for free. Give them an incentive and you could see their efforts multiply. Even businesses with online presence can use the power of word-of-mouth and a company who is offering just that is NextBee. There are many reasons for implementing a customer relationship marketing plan but the one that is more relevant today is that it is cost effective and can yield tremendous results. Small businesses are using relationship marketing in creative ways.
Now go out and get yourself more customers and avoid being part of the statistics.
Posted in Customer Relationship Marketing