Posts Tagged ‘customers’

Follow Up: The Cost of Existing vs. New Customers

November 15, 2010

Everyone knows that it costs more money to acquire new customers (5 to 7 percent more on average) than to stay in touch with existing customers. Yet so many sales associates don’t have follow up programs in place.

It’s shocking because it’s easier than ever to stay in touch with customers now because of technology as well as companies that do the work for you.

The problem is that sales associates think of marketing as a cost, something they have to spend money on and can cut during tough times. However, the reality is that you spend more money to get a new customer. Think of how much more business you could have if you spent a little time and money on follow up.

Customer follow up should really be seen as an investment. Use some of today’s money to generate a future income stream. Look at the lifetime value of a customer versus the cost to acquire a customer.

Here are a few ideas for sales for following up with customers after a closing and retaining them for life: (more…)