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Keep old customers or find new ones
By Steve Watson
So what is more cost effective and easier? Does my business rather look after my existing customers or does my business spend more cash and resources finding new customers? Those are excellent questions to ask but never easy to answer. You the business owner are the only person that will be able to answer those questions. It has been proven that finding a new customer can cost your business anything from 5 to 10 times the amount that an existing customer will cost your business. But if this was so easy then most businesses will never look for new customers, only look after their existing customers. You are the only one that with honesty can determine where your business fits within the above scenarios. Use the following to help determine your customer profile: • Does your business sell products that just about last for ever? You may only see that customer 10 years from now.
• Does your business sell or hire services?
• Does your business sell consumables? Products that last for ever. These products are typically mattresses, washing machines, tumble dryers and various other white appliances and furniture. You can always add accessories and try and draw back your existing customers and selling it to them. But eventually most of those existing customers will have anything and everything that you offer. So from this point my suggestion would be for you to have started your marketing campaigns to attract more new customers. This is bad for bottom line profits but you chose to make this your business and this is hoe this business model works. You can always supply your existing customers with a service department to fix and look after their products supplied from your business. This means that you need to employ more staff but at each end of the month you know that cost to be fixed. A lot of companies actually make a very good living with their service sections. Selling or hiring Services With this scenario you definitely have to look after your existing customers as they will form the life blood of your business. You most likely will have large contracts with various other businesses related to your service offered. Your business need to grow constantly as these contracts that you offer will expire as time goes by and some of these companies will not want to reinstate them. Therefore your company will also need to spend resources and cash on acquiring new customers. Selling consumables
The consumable market is a very competitive market as anybody and everybody can get their hands on it. To even have existing customers in this market arena is very good. A lot of your sales are most likely from impulse buying and a good marketing campaign and cut throught product pricing. You need to offer incentives with the products that you sell. You also need to try and get your buying customers into a “buyer’s database” or email list so that you may send them offers all the time. So effectively buying their loyalty. From the above it is clear that you can’t sit back and relax, you need to spend money and resources to get new customers on continues basis. Remember to get them on your marketing list. With this list you may sustain your business for quite a while should your business fall into cash flow problems.
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Memory Foam Toppers
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This is handy information. I had never thought about the differences in marketing the various types of products/services, but I think you're right.
I sold cars and trucks for 15 years. I used to send my customers a birthday card and a Happy New Year card every year. By keeping my name in front of them, I recieved business from other family members. Personal referrals are some of the best sales leads one can get.
Good intel.
Frederick
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This intel was contributed by Multo
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May, 2012
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