Why your current clients are just as important as new ones
In business, we’re led to believe we should enjoy the thrill of the chase. Chasing new customers, that is. We think we should constantly be growing, acquiring newer, better clients at any cost. Sometimes, the cost is at other customers’ expenses.
But this current situation has put us in a strange situation. It’s hard to know what to do, after all, should you be going after new customers right now or paying attention to your existing clients? Their loyalty and patronage are part of the reason why you’re here today. They deserve your respect and attention.
You might think fostering new business relationships is the top priority, but right now, you should be nurturing your current relationships as much as possible. Here’s why.
It makes more fiscal sense
If you look at it from a purely numbers point of view, putting all your effort into recruiting new employees doesn’t make financial sense. Acquiring a new customer is five times as expensive as retaining an existing one.
It can become a wasted effort. You are more likely to sell to an existing customer than to a new one. And it’s by a wide margin too – 60-70% likely for older customers and just 5-20% for new ones.
Then there’s the fact that increasing customer retention by just 5% can increase profits by 25%. If you’re very successful, it can be as high as 95%. So if your aim is to increase profit margins and bring in more money, you have a better chance of doing it through your existing customers than through new ones. But that’s an impersonal way of looking at the issue – don’t forget there’s a human element to this too.
It’s about human relationships
Why should you pay more attention to existing clients over new ones? Because their loyalty deserves your attention. They have given you their patronage and been a regular for who knows how long. It could be months, years, even decades – does that not deserve something?
Yet 44% of companies put a greater focus on chasing new leads. Compare this to just 18% who focus on retention. But this loyalty is about more than the sales they give you; they can be ambassadors for your brand. They can spread the good word about your company, telling their own customers about you. Word of mouth is always an effective form of marketing, especially since it doesn’t cost you anything.
And neither does being a nice person. Business can be so impersonal sometimes, which is strange for a world that thrives on interpersonal connection. You wouldn’t want to be left by the wayside, so why do that to your clients? They are the backbone of every business and the foundation by which you can grow stronger.
By all means, chase those new clients – they will be key to your future growth. But on your road to greater success, don’t forget those who paved the way in the first place. At a time like this, we need to be compassionate and kind. Reach out to your regular clients and make sure they’re okay. If we stick together, we can all make it through this situation.
At Big Hand, client appreciation is a staple of our service. We make sure everyone feels important and part of the Big Hand family, no matter what the situation. Whether you’re looking for accountancy services or business advice, we’re here to help. Call us on 0161 327 2911 for a chat today.