Bringing in new customers is a top priority for many companies. Even in business services. Yet it is precisely for these types of companies that it is advisable to invest more time and energy in retaining customers rather than attracting new ones.
Better chance of a sales deal with an existing customer than with a new customer
In business services, the sales process for new business usually takes a very long time and competition is often fierce. From longlist to shortlist to final selection, one party after another falls off in the selection process. Therefore, the chances of a sales deal with a new customer are very small, in many cases less than 10%. With existing customers, this is different. They are familiar with your organization, your people and your capabilities. If they are satisfied with the level of service you provide, the likelihood that they will choose your organization for a follow-up project is significant. So as a business service provider, invest a lot of time in customer satisfaction and customer relations. It increases the chances of a sales deal on a new project.
Acquisition costs are much higher than retention costs
Accounting firms, advaocate firms software vendors and consulting firms put a lot of time and resources into appointments, meetings, presentations, demonstrations and negotiations to convince a company to choose them. These acquisition costs can be enormous. The many non-declarable hours that your (often important) employees put into preparation, research, travel, meetings and follow-up can be quite expensive. While the cost of customer retention is much lower. After all, the client already knows you well and largely knows where your qualities lie. When an existing customer has a new order, expands the business, renews IT or optimizes processes, alignment with you is necessary, but these retention costs are significantly lower than prospect acquisition costs.
Satisfied customers bring new customers
Satisfied customers are the best possible ambassadors for your organization. Investing heavily in marketing and sales can be profitable, but a more simple and cheaper way is to pay careful attention to existing customers. Make sure they are satisfied, or better yet, enthusiastic. This leads to them recommending your organization to others. And a positive message from a colleague or competitor is seen as many times more reliable than the texts from your own marketing department.
Customer retention allows you to build customer relationships
Trust is central to business services. And trust is created by keeping appointments, keeping promises and delivering quality. By being a reliable and strong partner for your customer over a long period of time, you build a valuable relationship. And that is crucial in business services. After all, it is always people who make business decisions. Your product or service can be so strong, but it is people's emotions and instincts that are the deciding factor in sales processes.
You are not faced with the choice of bringing in new business or retaining customers. Divide your time and energy well between both. And for many business service providers, this means putting more focus on customer retention, because it often gets less attention than acquiring new customers.
Teun Arts is Service Manager at Dysel and ensures that customers make optimal use of the software's capabilities, now and in the future.
