As Published in the Australian: Winning new accounts is satisfying, retaining them is profitable

Here are a few of the key points outlined:

While we love the thrill of the sale and winning new accounts, the statistics around customer retention vs acquisition are staggering.

• Securing a new customer can take 5-25 times more effort and expense than working on driving sales from existing loyal customers.
• It is estimated that it’s 6-7 times more expensive to gain a new customer than it is to retain one (Source: Salesforce).

In terms of productivity:

• You can expect 60-80% close rates for existing customers
• While new accounts are only 10-30%

Profitability:

Bain research tells us that our existing customers are significantly more profitable than the shiny and ever-elusive new accounts our teams long to secure over our competition.

• 5% increase in customer retention can increase profitability by 25 to 95 percent.

Profits can then be invested in more effective and efficient acquisition strategies.

Add to these impressive figures the fact that winning new business is getting more and more challenging: Why?

More informed buyer:

• Extensive research conducted online
• Significant competitor investment in customer experience

If growth goals are reliant on new business, survival will be tough and the company will suffer.

Of course new customer acquisition should be a priority; but part of an overall strategy. Maximising existing accounts is the path to profitability and sustainable growth.

Another step along the path to becoming future-proof.

More detail in the article, or if you’re looking for more, I dive deeply into this topic in my book Future Proof Sales Strategy. The book outlines the actionable steps by which you can implement this world-class sales practice.