Have you ever considered the effect that the location of your business is having on your bottom line?
(Photo credit paul bica)
Because if you’re not close enough to your customers, then your business location could be costing you sales.
The latest Regus global business survey shows that physical proximity to customers is one of the most important sales drivers for an overwhelming majority of companies. Indeed, of the 19,000 business owners and senior managers surveyed around the world, more than 80% said that customer retention rates can be increased by greater physical proximity to customers.
Almost as many respondents – 78% – also said that physical closeness to customers also helps solve customer problems and improves customer satisfaction levels. Taken together, these two benefits also combine to reduce churn among customers or clients.
The role of physical proximity in customer retention is even more crucial when you consider that studies report that acquiring new business can be five times more expensive than retaining customers. So a 2% increase in customer retention can equate to a 10% cost reduction when it comes to servicing the business. Which makes it very worthwhile indeed to consider ways you could get your business – or at least some of your people – closer to your customers.
And when you’re considering whether your business is in the right location, you should also bear in mind the improved performance that business who trade internationally are currently enjoying. More than half of the businesses who were exporting their products or services who responded the survey reported that they were generating increased revenues, compared with less than half of companies who focused on their domestic markets. International businesses also report a comparable increase in profits compared with their purely domestic counterparts, so this increased business is clearly business worth having too.
Please click here to download your copy of the full Regus global survey. And remember that if you decide to change your location or to move some of your people closer to your customers Regus can help you find flexible workspace on the right terms all over the world.