Is Your Business Climbing the Right Mountain?

In business too often the focus is on winning new clients, at the expense of the existing customer.

This is true for both many small businesses and large corporates.

New customers are promised the world, made to feel valued – then ignored as the focus switches to the never ending treadmill of bringing new clients on board.

Many businesses argue this is not true, “we value relationships and our existing clients”, but the reality is something entirely different. Just ask their customers, or indeed reflect on your won experience!

Can you name one business you deal with, where you feel truly valued?

What this continual focus on winning new business ignores is the value of the existing customer and also the cost and lead times involved in gaining new clients.

Some sobering research findings:

• It costs 6 to 7 times more to acquire a new customer than to retain an existing customer!

• A 5% increase in customer retention can lift profit by between 25% & 80%!

• At any one time, only 30% of customers are totally satisfied!

• 67% of clients leave due to indifference!

• The probability of selling to an existing client is 1 in 2 – to a new client 1 in 16!

• Referrals conversion rate is approx. 60% vs.10% for a new prospect!

This information is freely available yet too often in most businesses the relationship with the client ends with the sale. The end result - money and time are wasted, on the endless new client acquisition treadmill.

We are not arguing that a new customer acquisition program is not important. It is!

However we ask you consider, how could your business be transformed and profitability improved, if you truly valued your existing clients?

In all likelihood you would see:

• The costs of advertising and promotion reduced.

• Reduced customer acquisition costs – commissions etc.

• Less price sensitivity.

• Reduced costs associated with continually setting up new accounts.

• If you provide your clients with payment terms, less time spent checking the credit standing of new clients.

• Shorter lead times to a sale.

• More repeat business.

• Less customer defections.

• More referrals from satisfied clients.

• Enhanced client relationships.

• Improved productivity from your team.

Again we state, we do not suggest that business development activities should be ignored – however we ask that you consider how your business could be transformed if you truly valued your existing customers.

Ask yourself:

• Do we provide our customers with exceptional after sales service?

• Do our clients feel truly valued?

• Does a high percentage of our business come by way of referrals from satisfied clients?

• The again ask yourself – Can I name one business I deal with, large or small, where I feel like a valued customer?

If you want to transform your business, reduce the costs associated with customer churn, then start to look at your business through your customer’s eyes. Look at every way you come into contact with your customer. What needs to change?

Then ask your customers the question – What can we do within our business for you to score us 10 out of 10 in the area of customer service?

Why do it? Because very few others are! It is an opportunity to stand out from the crowd!

Putting meaning into the term, “valued customer” can be a rewarding and exciting journey. If you would like to learn more, or you want someone to assist you through the process, give the team at ClientEdge a call today.