Let’s talk about customer loyalty, after all, you need a loyal customer first before you can up-sell and have them buy more, right?
While customer loyalty does lead to repeat business and more sales, most people have the equation backwards. The truth is the more people buy from you, the stronger the loyalty.
The top 10% of breakthrough companies are not rewarded with remarkable success because their closing ratios on net new busloyalty. The longer a customer is tied to you, the longer they will stay a loyal paying customer.
iness are much better than other companies, but because their customer retention rates hover around 95%! They are therefore able to sell more new products and services to their existing customer every year.
Closing on new business makes any business owner happy, but often times more damage is being done if existing customer satisfaction and retention is suffering because of prospecting. The best way to grow a business is to sell more to your existing client base. Don’t get caught running circles in your business by closing new deals only to have them replace clients who are leaving because you weren’t able to make them happy.
Think about it this way, the first method to selling includes spending all your time prospecting. This method will hardly ever work in your favor to make your current customers want to stay loyal to you. On the flip side, a second method is focusing time on customer retention as well, and will actually work in your favor in prospecting new clients. The larger portfolio of satisfied customers you have, the more prospective customers will want to work with you. The more clients you have singing your praises, the more likely you will be to get a referral from them. Also, the power of testimonials works wonders in increasing your net new business more quickly.
I think you’ll agree the second method works much better for your business’ success.
In a world where most of us are attracted by the shiny new toy or object on the market, it’s sometimes difficult to keep your focus on your existing customer base. It’s much easier to get sucked into the allure of attaining a brand new paying client than to nurture your current relationships. Fostering the relationships you’ve already attained is the true key to increasing your success. ← Click To Tweet
By doing so, you benefit in four vital areas:
1. Higher profits than net new sales.
2. Stronger customer loyalty.
3. Increased referrals.
4. Shorter sales cycles.
The better path to take for your business is clear, always grant current relationships the ability to grow and be fostered. You never want your current client to suffer because you’re too busy focusing on getting new ones!
What’s one thing you do to ensure your current client base is happy?