Greg is a sought-after speaker. Having faced many of the trials and tribulations facing the small business owner, Greg offers his audiences and clients practical actionable ideas to improve their organizations and ultimately get more “life” out of their business.
https://gregweatherdon.com/
Small Business Minute #21- No More Customers
I regularly work with small business owners who are so focused on growing their customer base that they ignore their existing customers.
Existing Customers Are More Profitable
What most don’t realize is that existing customers are far more profitable than new customers. In fact, it can cost you 5 to 10 times more to get a new customer than it does to service an existing customer. In addition, if you can increase an existing customers’ loyalty or purchase frequency by just 5%, you can increase your profitability between 25% and 85%!
So why is that? Well, when you consider how much effort goes into getting a new customer on the books, it becomes very clear. Think about how many prospects you phoned or emailed. How many quotes did it take to convert one of those prospect into a customer? How many appointments did you have and far did you have to drive and still not get an order? So when add it all up, getting new customers can be a very expensive proposition. But of course we never take those costs into consideration. That would be too painful.
Existing Customers Trust You
Now compare that to your existing clients. They already know and trust you and that makes it far easier and quicker to get in front of them again and introduce some of your other products or services. In other words you have history with them.Of course you can only do this if you have been collecting their contact information all along. I know of companies that have done business with 1000’s of customers but have not taken the time to collect and manag...