Cash-strapped businesses in Norfolk and Suffolk could be spending five times as much trying to win new customers as they could in retaining the ones they have, a business adviser has warned.

Customer experience (CX) expert Judy Randon is cautioning businesses across the two counties against neglecting their "customer is king" ethos in a bid to secure new clients as hard times bite.

With many businesses facing their toughest periods yet as bill mount, inflation soars and their customers tighten their belts, Ms Randon, of insight6 Norfolk and Suffolk, advised them against neglecting their existing customers.

The adage was never truer than in a competitive market, she said. While many businesses will instinctively focus on driving new business in a bid to protect their profits, ensuring existing customers are happy is "arguably more important", she added.

“It costs a business at least five times more to find a new customer than to keep an existing one so it is vital to make sure that you are not losing customers before you invest in finding new ones – otherwise you are just throwing money away further down the customer journey,” she said.

“When times are tough, businesses, like the rest of us, try to save money but a common mistake I see is businesses cutting back in the wrong areas. Trying to speed up processes or cutting out the small extra touches that set their business aside.

"This is the time to really invest in the things that your customers will value and remember you for. The time and effort you put into delivering them an experience.”

She suggested firms should use National Customer Service Week - which runs from October 3 to 7 - as "an opportunity to consider their customers’ wants and needs and assess how their business can continue to meet and exceed their expectations during challenging financial times".

To help business owners navigate the next 12 months, insight6 has produced a CX Business Pack which can be downloaded for free. It contains resources to boost employee morale and improve the customer experience to drive profitability.

But firms also need to embed change in their organisations to build loyalty and create a robust customer experience strategy, added Ms Randon.