5 Financial Problems Your Customers Will Notice
In theory, the formula for retaining happy customers at your business couldn’t be simpler: provide a product or service people want at a price they’re willing to pay.
But of course, all business owners know it’s nowhere near that simple in practice.
Many factors influence whether your customers will stick around, including a number of decisions you make about how you’ll operate your business finances. Your customers may not know the details of financial decisions you make, but they’ll certainly feel their impact.
Here are 5 ways your financial problems could lose you customers. Avoid these, and you’ll be in a better position to keep your customers coming back.
You make it difficult to pay
Any friction in the payment process could send a subtle message to customers: next time, maybe you should go somewhere else. This includes not accepting credit cards, not allowing customers to pay their bills online, and not automating recurring payments.
The good news is that the reverse is also true: an easy, painless payment process can encourage customers to continue using your business.
You stop improving
Your competitors are out making renovations to their stores, upgrading their backend systems, or investing in new products. Meanwhile, you’re not able to invest in your business because you lack the money, and for whatever reason, you haven’t taken out a loan.
Your customers might eventually start to look at your competitors and realize that while you’ve stood by, everyone else has become better.
Your employees aren’t happy
Your employees, especially those that face your customers, have the power to create and destroy customer goodwill. One way to keep them happy: make sure they get paid properly and on time.
Set up a simple direct deposit payment system to help you and your employees spend more time focused on your customers.
You have to unexpectedly or sharply raise your prices
All businesses have to raise prices, even if it is just to keep up with inflation. But if a price increase comes hard and fast—perhaps because you’ve failed to plan for cost increases—your customers aren’t likely to enjoy the surprise.
You go out of business
You might have the best product in the world, but if you can’t eventually figure out a way to sell it at a profit, you’re going to close your doors. And if you don’t pay your taxes, the government will shut your doors for you. At that point, you won’t have any customers left to retain.
You probably didn’t start your business so you could obsess over accounting, taxes, regulations, and employee health insurance. But unless you devote attention to the bedrock basics of business, you won’t have a business at all.