How Do I Retain Customers And Sustain Those Relationships?
Customers who developed slow/no pay buying habits in 2013/2014 have a choice for the months ahead: Do I pay my outstanding bill plus the cost of another tank of fuel, or do I go elsewhere and just pay for my new supply. That load-to-load mentality leads to attrition. So does the strain placed on relationships with customers who were once in good standing but had difficulties during the 2013-2014 winter. At the same time, your competitor’s loss for these reasons could become your gain. And while new customers seem like a blessing, if they’re the result of attrition elsewhere, they could actually be a liability. The best course of action is customer education and communication: Maximize sales opportunities while minimizing risks. Pull credit reports on new customers. Determine to whom you’ll extend credit and how much (for example, limited credit based on their credit report, collect on delivery, or full credit). Revamp your credit policy and procedures. Make sure your policies aid timely payment and customer retention. For example, if you place a debtor on COD once he finally pays, you’re encouraging him to go to a competitor who will sell him fuel on credit. The most effective strategy is to educate customers about paying on time — not chase them to the competition. Say thank you to customers for their business. Create an incentive for early orders or payment. Request feedback and respond.
