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The impact of recession on client retention worries 66% of business owners.
Despite recent signs of economic growth and a reported upturn on the horizon, a
staggering 63% of UK business owners continue to worry about losing clients.
While struggling to cope with ongoing recessionary pressures, UK business owners
are being forced to focus on client retention to ensure their firms stay afloat,
according to new research from the leading Bibby Financial Services.
The survey, designed to investigate the recessionary attitudes and behaviour of
more than 300 business owners from a range of sectors across the UK also showed
that, rather than chasing new revenue streams, 50% of firms are aiming to build
better relationships with existing clients and 63% are now scrutinising
suppliers more carefully.
More positively, 47% of business owners have seemingly become more aware of cash
flow and have decreased debt levels since the beginning of the recession.
Firms are also clearly benefiting from reviewing these processes, with 43%
reporting the return of lapsed customers.
Edward Rimmer, UK chief executive at Bibby Financial Services, stated:
“Following the economic uncertainty of the past two years it is perhaps no
surprise that companies still have concerns about maintaining current levels of
business.
"But owners and managers are learning from their recessionary experience and
making changes to their business which will benefit them in the long term.
“However, occasionally there will be factors affecting their business which are
beyond their control, such as late payment, for example.
"Indeed, the business owners we surveyed reported that only 19% have seen
customers decrease payment times.
"Despite the fact over half of business owners are focusing more on managing
late payment, it’s clear cash flow is still being affected.
“Proactive business owners looking to manage their company out of the recession
by reviewing all survival strategies would be wise not to forget about cash
flow,
"As our research shows, it truly is the lifeblood of business”
Source: Credit
Control Journal
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