“The way to wealth is as plain as the way to the market.” Benjamin Franklin You may chase away your dream of riches if you exploit or neglect your customers -confident that they can’t do without you. It is a dumb business practice, yet many short-sighted business owners do just that. There are foolish entrepreneurial hot shots who will do hand stands to promote, wine and dine, or do what ever they can to snare a new fish, but once on board-these new customers are treated as personal property. Frank, the owner of a cassette tape duplicating plant did just that. To get a new customer he would give away the store- but quick to squeeze a loyal customer. At one time, he had a yearly contract with the Disney Corporation to manufacture the Disney children’s audio book products. During the midst of Disney’s busy season, Frank, in a moment of supreme over-confidence demanded a price increase. As Disney was unable to change vendors on short notice, the purchasing agent had little choice but to swallow Frank’s demands. Not so at the end of the contract, when Frank was informed that Disney was going elsewhere. Entrepreneurs like Frank, think a new customer is more exciting, more challenging, and even romantic. But the steady and stable customers are assumed to be "chopped liver." Such foolish business owners spend time and money promoting their wares to a new prospect and never buy an old standby a cup of coffee. And if any but a large customer disappears off the radar screen they are not missed until business conditions start to stink. Before a fate like Frank’s befalls you, pay attention to your customers- existing and departed- as they are your future. Have you read the fable about the unhappy Arab farmer who after inheriting the family farm longed for riches and a more glamorous way of life? Feeling sorry for himself, he sold his land to a neighbor at a bargain price and headed for Europe. Years later, after wasting his funds and not finding the glamorous lifestyle of his dreams, he returned to his birthplace to find his former neighbor living like a sultan. Flabbergasted, he asked how such riches were possible. “Simple,” said his former neighbor, “I discovered ‘Acres of Diamonds’ on the land you sold me.” His unseen fortune was at his feet. And how does this fable relate to your business- look to your existing customer base. Are you getting all the business you should? Are you treating an “old” customer with the same enthusiasm you do with a “new” client? Some entrepreneurs don‘t get the point. I know one in particular that has done business with thousands of customers over the years, but worries more about getting a new one away from the competition then the welfare of a lengthy list of past customers. His list of inactive customers dwarfs his current account list. The company was so focused on finding new leads and customers that the “Acres of Diamonds” of former customers laid buried in his sand. Cingular a major wireless telecom understands. The company works to keep customers. They promote a roll-over plan aimed at rewarding loyalty by offering an incentive to stay. If customers don’t use their monthly time allotment Cingular rolls it over to next month allowing customers to save their unused minutes. A great idea and a smart strategy. Customers will think before switching- because if they do, they will lose their unused minutes. A super customer retention plan, as it goes to the heart of one of the most valuable marketing strategies you can use to keep your customers and keep them buying: Reward coupled with incentive. Here are a few examples of sales and marketing tactics others have used. Many entrepreneurs offer cumulative quantity discounts. The more the customer buys the more they save. Some car wash facilities offer a free wash after 10 visits. Theaters sell season subscriptions and offer special previews for members. Super markets use special customer cards offering deep discounts to loyal customers. Department stores offer special pre-sale previews for “preferred customers.” But don’t overlook the simplest strategy of all: Customer appreciation! It is the most effective of all. My favorite business phrase, “People want to do business with people who want to do business” means you want and appreciate your customer's business. Don’t make the mistake of assuming your customers know it. That is a fool’s philosophy. Customers appreciate hearing that their business is important to you. Thank them for spending their dollars with you. Simple but effective. Are you aware that a common complaint of purchasing agents is “vendor neglect?” Now what can you do to keep your customers? Don’t ignore them, and don’t take their business for granted. Shower them with attention. Call, send an E mail message, pay a personal visit, or send a holiday card. Just don’t overlook the personal touch. Dig up your diamonds before someone else does. Use this holiday season of giving to say thank you! Dr Paul E Adams, Professor Emeritus Business, Ramapo College of New Jersey & Retired Entrepreneur, Syndicated Columnist, Host of the access cable TV program "Tri -State Movers and Shakers," and Author of “Fail-Proof Your Business,” Available @ Amazon.com. Comments, questions, or suggestions to: xpaul@pikeonline.net