Which is cheaper: to attract a new customer or to keep an existing one?
The difference between buying goods or service from a new provider is very different to that of buying from a provider we know and trust. As a first-time buyer we do what we can to ensure we are buying what we need in the hope that, if needed, the provider will have a post sales team that will be able to support us. However, if we have a negative experience post sale, this dramatically effects our willingness to buy again or continue with the goods or service. We are not going to repeatedly pay for a negative experience are we!
As you move online, where you may buy goods or services repeatedly from the single supplier the customer experience (CX) is even more paramount. The online or SaaS (Software as a Service) model relies on that customer being happy with their engagement both at point of purchase AND ongoing, so a shiny salesperson is simply not enough, he/she needs support behind the scenes. In today’s market in is imperative to offer exceptional “customer” support as we are faced with so many choices in such a competitive market, we need to know we can win the client and keep the client long term. It’s never been more important to keep the customer happy!
This has never been more so than now in the semi-post pandemic, challenging supply chain environment, where we even have a war in Europe going on the background (Slava Ukraini). So, what is cheaper to win a new customer or to keep an existing one? The primary focus of most businesses is to win new clients in order to grow but is this the best way to support that growth. On average it costs x7 times more to win a new customer than to sell to an existing one and 44% of companies focus on customer acquisition as opposed to only 16% on retention! Even though 65% of a company’s business comes from those existing customers. Surely this is proof that we need to focus as much if not more on keeping the customers we have and growing them as opposed to constantly looking for new ones. There is an old saying that “customers are hard won but easily lost”, never has this been truer than in this open and strongly competitive market.
So how can you keep customers that generate on average 65% of your revenue, as a loyal and happy customer spends 67% more than new ones. The answer starts at good customer service, having the right people with the right knowledge and most important of all the right approach to dealing with your customers. A good attitude goes a long way, not everyone can sound confident, positive and be helpful to customers who may be at the more challenging end of personal frustration! If you have the right people in support to help your customers then you are winning by a mile already, as these people will ensure your customers are happier and more confident with your products and services.
So in this desperate fight to win new business, maybe we should spend a little more time looking at what business we have and just how happy those customers are with what we do, this very much does not mean just a survey although that could be a good start. At Vpress the client engagement starts with great Account Managers and a great support team that guide customers through the complexities of our technology and always offer a helping hand when needed. With constant customer communication we know where our customers are and what they need form us to grow and prosper in this challenging market. While we always are thankful for our customers support, as a business we know we have first class team members that help retain our client even when times are challenging. For Vpress a new customer is just the start of a journey with great support on offer.
This is dedicated to the Vpress support team.