Attracting new customers is a top priority for many companies. Also in the equipment management industry. Yet it is advisable to invest more time and energy in retaining customers instead of attracting new customers.
Better chance of a sales deal with an existing customer than with a new customer
In sales deals of equipment dealers, the competition is often fierce. Everything needs to match; the equipment should meet the customer’s requirements and wishes, the price should be right, and the service, warranty and conditions need to match. This is different for existing customers. They are familiar with your organization, products, people and capacities. If they are satisfied with the level of service that you offer, the chance that they will choose your organization for a follow-up project is considerable. As an equipment dealer, therefore, invest a lot of time in customer satisfaction and customer relationships. It increases the chance of a sales deal with a new project.
Acquisition costs are much higher than retention costs
When generating new business, you invest a lot of time and resources in meetings, discussions, presentations, demonstrations and negotiations to convince a company to choose for your organization. These acquisition costs can add up enormously. The many non-chargeable hours that your (often important) employees spend on preparation, research, travel, meetings and follow-up can skyrocket. While the costs of customer retention are much lower. After all, the customer already knows you well and knows quite a bit about your capabilities. When an existing customer has a new need, contact with you is required, but these retention costs are considerably lower than the acquisition costs for a prospect.
"In the equipment management industry, trust is key. And trust is created by acting in line with agreements, delivering on promises and delivering quality."
Happy customers bring new customers
Happy customers are the best possible ambassadors for your organization. Substantial investment in marketing and sales can be profitable, but a simpler and cheaper way is to pay careful attention to existing customers. Make sure they are satisfied, or even better: make them enthusiastic. Then they will recommend your organization to others. And a recommendation from a colleague organization or competitor is considered many times more reliable than the texts of your own marketing department.
Customer retention allows you to build customer relationships
In the equipment management industry, trust is key. And trust is created by acting in line with agreements, delivering on 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 for equipment dealers. After all, it is always people who make business decisions. No matter how strong your product or service is, it is the emotions and instincts of people who make the difference in sales processes.
You are not faced with the choice to either bring in new business or to retain customers. Divide your time and energy well over both. And for many equipment dealers, this means paying more attention to retaining customers, as this often receives less attention than acquiring new customers.
