Attend a special evening hosted by Mike Atherton

Wedding guests get a surprise when they tuck into a slice of Ian Wellens’ dramatic multi-layered “cakes”: they are made from artisan cheeses, piled one on top of another to make a savoury centrepiece for the bride and groom.
He often receives photographs of the big day from the couples, which he sees as proof of the value of building a personal relationship with customers, even for an online business such as his.
Wellens, who set up the Cheese Shed three years ago, said: “People feel they have a relationship with me. It is not just about being a Cheese Shed customer — it is about being a customer of mine. There must be something invested in our relationship, otherwise they wouldn’t bother.”
The business, based in Bovey Tracey on the edge of Dartmoor, Devon, sells more than 100 cheeses from the West Country, mainly made by small producers. Wellens sends customers the story behind the cheeses they buy and details of the people who made them.
“Having a genuine commitment and enthusiasm for what you are selling always counts. In these straitened times there is still going to be a space for those things that people think add a bit of value and quality to their lives,” he said.
Adding value helps businesses to retain customers, and is all the more important when there are fewer new ones coming through the door. Tony Walford, partner with Green Square, the business adviser, says the first step should be to think hard about why each customer needs you. “You have to understand where you really add value for your clients — and make sure they realise it.”
Be wary, though, of trying to over-service customers. Walford said: “It would be easy to give them twice as much for their money because you are worried about losing them. But then they become unprofitable because you are doing too much.”
It is vital, of course, to make sure that a customer is one that you do want to keep. “Take a step back and make sure that a client is worth keeping before fighting for them,” he said. “If they are not making money for you then you have to be brutal. You cannot afford to carry people. And profit, not turnover, is the key here.”
Losing one of your bigger clients could be a worthwhile sacrifice, he said, since it is they that are most likely to have driven down the price paid to you. “Freeing up capacity allows you to remove costs from the business or win better clients. If you do win new clients, it has a halo effect, helping your existing clients to justify why they are staying with you. They will think, blimey, you are good.”
Caroline Pearce, a senior consultant with Customer Essential, a customer management consultancy, recommends taking a close look at whether customers’ needs are changing as a result of the recession. “Is there any way that you could change your product or service to recognise that times are tight? Could you, for example, charge by the hour rather than half- or full-day?”
Some elements of the service could be stripped out so the client can be offered a lower price. Pearce strongly advises against straightforward price-cutting, however: “Only if you are absolutely desperate and have no option, should you discount. What you need to think about is that once we are through the recession clients will expect to keep the discounted price.” A good example of adding value, Pearce said, is the plumber who offers customers free help to adjust their boilers to make them more energy efficient, knowing that the customers will remember the gesture when the recession is over.
If customers do desert your business, talk to them to find out why they have left. This may help to identify other customers you could be at risk of losing.
John Grange, an adviser with Business Link, says the best way to keep a customer is to communicate with them: “Talk to them, ring them up, go and see them, love them to death.”
The benefits for you are far greater than simply retaining a customer and stopping them from defecting to a rival. “They have a huge amount of market information and intelligence, which you need to know. Most customers are open and honest because it is to their benefit, too.”
Above all, Grange said: “Don’t get into the habit of trying to force down their throats what you want to make or provide. With a recession, the competitive landscape will be changing, so what your customers want will be changing and what you provide has got to change.”
Don’t forget about good old-fashioned customer service. “One of the most common reasons for businesses not coming back is that they don’t feel they were looked after as much as they should have been,” Grange said.
Articles from our sister site WSJ.com:
You may be asked to subscribe to read certain articles
Industry sectors news at a glance. Interactive heatmap, video and podcast
Everything the Business Traveller needs to know to make a better trip
Get ready for the winter sports season, with our resort guides and snow reports
We are backing British business, what is the confidence of the nation and what businesses are succeeding?
Growing demand for energy, oil that is harder to reach and the rise of carbon dioxide emissions. We examine the energy challenge
With rail travel in Europe on the rise, we review the benefits of travelling by train
In this special section we explore new food trends to help improve your dinner party and impress guests
Enjoy further reading from Travel to Fashion, Business to Sport, discover more
1998
£47,955
12 months for the price of 11 and a 5% discount.
Offer ends 31/11/09
Check your free Experian credit report before applying
Car Insurance
£353 per day
Phonepay Plus
London
PwC’s Consulting practice helps businesses of all shapes and sizes work smarter and grow faster
PwC
£37,000
Department for Culture, Media and Sport
London
Currently £36,285
Department for Culture, Media and Sport
London
Moments from Battersea Park.
For sale with Winkworth
Find out about shared ownership.
See your free Experian credit report beforehand
Accommodation, flights, tickets to the race and a KL city tour for only £999pp
PremierHolidays.co.uk
For your ultimate tailor-made ski holiday, click here
Get covered on your travels with a superb range of policies at great prices. Visit InsureandGo.com
World Class Golf, Spa and preferential Beach Club. Private estate overlooking West Coast
Villas from £275 per night inclusive of Golf
Contact our advertising team for advertising and sponsorship in Times Online, The Times and The Sunday Times, or place your advertisement.
Times Online Services: Dating | Jobs | Property Search | Used Cars | Holidays | Births, Marriages, Deaths | Subscriptions | E-paper
News International associated websites: Globrix Property Search | Milkround
Copyright 2009 Times Newspapers Ltd.
This service is provided on Times Newspapers' standard Terms and Conditions. Please read our Privacy Policy.To inquire about a licence to reproduce material from Times Online, The Times or The Sunday Times, click here.This website is published by a member of the News International Group. News International Limited, 1 Virginia St, London E98 1XY, is the holding company for the News International group and is registered in England No 81701. VAT number GB 243 8054 69.