The answer is not so simple. I would say rather keeping , finding and having the Right Customers, no matter its new or existing. At the same time you must know that the cost of acquiring a new customer is anywhere from five to 25 times more expensive than retaining an existing one. The bottom line: keeping the right customers is valuable.
Yes, attracting new customers may be rewarding, but it also often involves a lot of hard work. To put it bluntly, it costs a lot more to find new customers than it does to keep old ones.
Yardstick to keep right Customer. Below questions any Entrepreneur must introspect:
1. Do you offer good service and value for money?
2. Are you rewarding your Customer for being loyal to you?
3. Do you stay in touch with your customers after they have made a purchase? Are you accessible?
4. Do things when you say you’re going to do them. Under-promise and over-deliver
5. Stay in touch. Remember the best clients are your current ones. Don’t take them for granted. Keep on top of their asks.
6. Be a resource. No matter what your customer needs, try to find it for them, even if it has nothing to do with your business.
7. Treat your employees well. If they are treated poorly, there is a good chance they’ll treat your customers badly.
All industries are highly competitive and more than ever we all need to be smarter. One of the smartest business strategies is to look after your existing customers. Nurture them, encourage them to spend more with your business, continually ask them for ways to improve your current level of service and range of products. Stay in touch with your customers, reward them for being loyal and they will stay with you for many years. In other words, they are made to feel very special.
In today’s competitive world where options are multiple , Customers will come and go, often disappearing without ever letting you. As people say, “Make new friends, but keep the old. One is silver, the other gold.” Similarly, a long-term customer is of more value than a single-deal customer, and it’s a lot less expensive to keep a current customer than to acquire a new one. This is not to say that we shouldn’t go out and get new customers, but if we can keep a larger percentage of those customers for a longer life cycle, we build on a revenue foundation that is more profitable and predictable.
However , keep on working to acquire new customers because it is important for a couple of reasons. Some current customers will move, find a different company with whom they will do business, have no more need for the product or service that you offer, and some will die. New customers will also help you to grow your business, expand, and make more money.
Dr Praveen Srivastava, Business Coach & Management Consultant