Concept:
If you can secure long term business you can improve your results, reduce costs, spend less time filling gaps in your budget and lock out your competitors.
This concept very much relates to Customer Relationship Management in that you will need to see things from the customers eyes if you are going to build a long term relationship.
Example:
- Have you got any customers that you have ‘locked’ in?
- How did you do it?
- Have you got other customers you are trying to gain long term commitment from?
Here are some ideas for locking the customers in:
- Sign a purchase/ supply agreement.
- Reciprocal trading – buy from customers who buy from us.
- Loyalty schemes which reward repeat purchase.
- Form a technology partnership/agreement.
- Sell products under license.
- Offer unique or bespoke products.
- Offer volume rebate schemes to secure 100% of customers’ purchases.
- Remove the ‘risk’ for customers e.g. stockholding agreement.
- Develop lasting business relationships based on trust.
- Supply on a National/European/Global basis which competitors may not be able to do.
Now develop a plan to lock larger customers in for the long term.