Recession empowering the small business customer
Thu, 02 Jul 2009
Small business customers increasingly expect greater levels of service for the same or less cost as the recession ensues, a new study has indicated.
Research conducted by business insurance comparator simplybusiness.co.uk indicates that 78 per cent of small firms are experiencing such demands.
Some 64 per cent of company bosses said they thought this was because customers were aware that their trade is increasingly important and they have an improved bargaining position.
Despite the findings, just 17 per cent of firms have taken steps to raise service levels and only 20 per cent have prioritised customer retention.
Tony Deacon, chief executive of simplybusiness.co.uk, said a telling impact of this recession is the power it has given back to customers.
He added: "They know that small businesses are crying out for custom and, as a result, it's very much a buyer's market. Small businesses need to focus on customer service if they are to survive in this most challenging of markets.
"Not enough small firms are actively working on retaining their customers. It is vital that more of an effort is made to keep clients happy whilst actively seeking out new custom."
Mr Deacon said that if small businesses fail to act, they should be prepared for their enterprises to fail.
Mafrir Peles, co-chief executive at DSNR media group, recently claimed that internet advertising is proving especially useful for small businesses as the downturn ensues.
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