All businesses want repeat customers... right?

The general rule is that 80% of your business comes from 20% of your customers. In addition, imagine the cost of getting a new customer vs. maintaining your existing customer base.

So why is it businesses have troubles keeping customers?
- is it price?
- service?
- delivery?
- etc...

I was asked by a friend who is in a similar industry to help determine ways to enhance their existing customer base to a level where they could simply maintain existing customers without having to worry about generating new business... extra business would simply be gravy.

I told him to come back to me after he has answered the following scenarios in depth...

#1. Call a couple businesses and see what their phone system is like, do they have a hold button, is it all automated, does music play in the background, sales spiel? What do you hear when you're waiting for someone to answer or for someone to come back with an answer to your question? Finally, what value did you get out of the conversation... did you learn something new or at least have your questions answered to your liking?

#2. In his next 10 purchases, write down how/why the transaction took place. Did he need the product, did he get bullied by a salesman to buy the product, what attracted him to that specific company, what was the atmosphere like, what colors were on the walls... and most importantly how was he treated during and after the sale?

#3. Explain how his sales cycle usually works (as it exists currently in his location - BS free), when people buy, what they buy, the volume they buy, and how he tracks exactly what he means as a 'repeat customer'.

Then and only then would I get back to him with 'my' opinions on what he could do to ensure his objectives are met. I encourage any company in a similar situation to do the exact same thing... and feel free to post your answers on here so we can discuss and help your situation.

Regards,