Why Retaining Current Customers Is 2022 Percent Easier Than Getting New Ones
OK, retaining current customers/clients is probably even easier than 2022%, but since it’s 2022, let’s go with this.
Think about it–which would you prefer: retain your current customers or get new ones to replace them? Of course the former, yet businesses put so much emphasis on growth that they often fail to take care of their existing customers. What many business owners don’t know (or simply forget) is that it’s easier and less expensive to hold onto your current customers than it is to find new ones. Of course, doing both is ideal, but don’t sacrifice one for the other.
Getting New Customers Is Expensive and a Pain in the Tochis
Customer acquisition cost, or the amount of money it takes to get a new customer, adds up quickly. Not only do you have all the direct marketing costs for advertising, you’re also paying someone to manage marketing strategy. Then, there are all the indirect costs for onboarding a customer once the contract is signed. You’re spending a lot of time getting to know more about their goals, what they like, what they don’t like, etc. Those costs are “squishy” and a lot harder to estimate, but they’re just as real.
It’s important to give your thought and love to your existing customers to maintain their loyalty instead of being constantly focused on new customers. As billionaire investor Ray Dalio says, “Don’t get distracted by shiny objects.”
Don’t Get Distracted by Shiny Potential New Clients
You’d obviously prefer not to lose customers, and clearly, your current clients prefer not to switch because that costs them time and money too. Make sure to treat your customers well because as much as you don’t want to lose them, they don’t want to lose you either.
Give the same (if not more) attention to what your client is saying and wants after the contract is signed as you did before. All too often, effort is lavished on trying to reel in a potential client, but the love affair cools once the contract is signed and the company is off again chasing new clients.
Growing Your Clients Is the Best Kind of Sales
As you grow your clients, you’re growing your own business. And it’s a lot more fun for everyone–you, your staff, and your clients– to grow your sales that way instead of scrambling for new clients. So before putting so much effort into chasing after the shiny potential clients, polish your current ones first.
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