Sales Equals Relationships

Image courtesy of ddpavumba/ FreeDigitalPhotos.net

When it costs between 5 and 10 times more to get a new client than it does to keep an existing client, why is it we often ignore our existing clients? I suspect it’s because of the excitement we get when we land that new client, whereas dealing with an existing customer is pretty routine in comparison.

The sales process doesn’t end when the contract is signed or the product is delivered, it’s quite the contrary. In many cases it’s just the beginning of a longer term relationship. How you manage that relationship will dictate the impact that customers has on your future revenues. It is said that if you increase sales by just 5% from your existing customers, you can increase your profitability from between 25%-85%. Why? When you think about the effort that goes into getting new customers, something we rarely quantify, keeping them as customer is so much easier. If everything went well on their first interaction with you, there really is no reason they won’t do business with you again and again.

Building these kinds of relationships takes a commitment of time. To begin with, you need to be visible to your clients on a regular basis. There are many ways to accomplish this without leaving your office. It can be as simple as a phone call or an email. Ideally though, in person contact is usually the most effective especially in business to business environments. Meeting with the customer at their place of business allows you to be visible to others at the company and serves to reinforce you as a supplier.

Don’t fall into the trap of only chasing new customers at the expense of losing an existing one. Yes new business is the lifeblood of every company, but don’t confuse new business with new customers. Because the more your existing customers are buying from you the less you have to sell and getting deeply entrenched with your clients is always beneficial

Excerpted from Greg’s upcoming book-Get More Life Out of Your Business©

Copyright © Greg Weatherdon 2012

If you found this helpful, Tweet, Like or tell a friend.

This entry was posted in Business and tagged , , , , , , . Bookmark the permalink.

6 Responses to Sales Equals Relationships

  1. Joe Cortes says:

    Great advise that everybody should read!! Thanks!!

  2. Hi Greg,
    Very topical and true…I could not agree more and further to your point…New customers are the lifeblood of companies. Or are they? Lately, marketers have been spending more time on current customers — revamping what customer service means, investing more in customer relationship management (CRM) systems and building teams to improve communication with customers.

    • says:

      Thanks Ruddy,

      Your comment is insightful when you consider the big focus on CRM applications. Given the hype around it, it would appear that this is all brand new, when in fact taking care of your existing clients is an age old concept.

      Greg

  3. Pre says:

    In today’s time, developing relationship is not hard, but maintaining them. Businesses can learn about any customer from any where in the world and give them the price and the product offering. But businesses want the customer to be repeat and long-term. Customer Service has become of utmost importance.

    But, there is always a competitor entering the market and gaining the market share by price and product offering. In today’s technological and competitive world, customer is more conscious of price rather then relationship. If we have a good relationship, but the costliest product/offering, there is very little chance of the person/business becoming our long-term customer, even though we can provide them the best service.

    • says:

      Pre,

      Thanks for reading and commenting. Your absolutely right but if you’re constantly over-priced for a similar product or service, the best relationship in the world won’t help and you’ll soon find yourself out of business. That’s how free market and now global availability of suppliers work.

      This articles assumes that at least your competitive and as a matter of fact the relationship you develop with your client will even allow you to be premium priced and not necessarily the low cost producer. Not having a relationship will almost guarantee you won’t be selected.

      Thanks again for your comments.

      Greg

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>