Here are three good reasons why you should look after your existing customers first.
It’s nice to have new things: a new car, a new outfit. New things are usually more interesting — until they become not so new. However, appreciating and making the most of what we already have often makes more sense.
This certainly applies to customers.
It’s all too easy to neglect our good customers for something ‘shiny and new.’ In this post I give three reasons why you should look after your existing customers before you seek new ones.
1: Getting a new customer is expensive
Think about it. What does it take to acquire a new customer? First you must go looking. This can involve advertising, cold calling, networking … the choices are endless and usually cost time and money.
Then, once you’ve won a new customer, there is a settling-in period while you get to know each other. Mistakes can be made during this time, and for a while you probably won’t work as efficiently with them as you do with your existing customers.
If all goes to plan, this new customer will stay for a long time. However, there is always a chance they will turn out to be not so great by being difficult to work with or failing to pay their invoices.
It’s a risk.
2: Existing customers spend more
Your existing customers know you. They trust you. You have built a mutually beneficial relationship. They understand the value of what you provide. As a result they spend more — up to 33% more, in fact. And they are less likely to quibble over pricing at every opportunity.
3: Existing customers give more referrals
There are few more effective ways of gaining new customers than word of mouth. For starters, you don’t have to spend time and money looking for them; they come to you.
And we all know it’s important to know a business, to have experienced them, before giving referrals — dud referrals can damage your own reputation.
When you invest in providing your existing clients the very best service, they become crusaders for your business. They know you do a great job, and also know that their reputations will be enhanced by referring their contacts to you.
Summary
Identify your most profitable existing customers. They are your A-listers — the kings and queens of your business. The ones you really want to nurture!
If you need help to identify your A-list clients and work out the best on-brand ways to nurture them, call Signpost Consulting, We’re here to help you out.
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