“Your sales framework focuses on customer retention because it is the most profitable and sustainable way to grow sales revenue.” – Janice B Gordon in today’s Tip 1186
How do you get customer retention?
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Scott Ingram: You’re listening to the Daily Sales Tips podcast and I’m your host, Scott Ingram. Today’s tip comes from Janice B Gordon. Janice is a Consultant, International Speaker, Educator, and Facilitator; and Author of Business Evolution: Creating Growth in a Rapidly Changing World. Here she is:
Janice B Gordon: Daily Sales Tip #3: Why Customer Retention. 44% of businesses focus on customer acquisition while only 18% focus on customer retention. The probability of selling to an existing customer is between 60% to 70% while the probability of selling to a new customer is only between 5 and 20%. So it’s clear on where your best effort is going to reap the best results scale. Your sales framework focuses on customer retention because it is the most profitable and sustainable way to grow sales revenue.
A Customer Retention Strategy post-pandemic is absolutely vital for 2 simple reasons. Customer interaction has been primarily through virtual touchpoints and will continue to be so in the foreseeable future. Secondly, when people feel threatened like in a pandemic and dealing with high stress and risk, they will naturally want to reduce their risks and stay with what they know and trust. The probability of converting an existing customer is 65% more than acquiring a new one says, Signal Mind Research. So customer retention post-pandemic is essential as more customers will reconsider where and how they spend their limited budget and many customers and accounts are facing a shift in direction. So it’s crucial to retain what you already have and reduce churn. It’s really crucial to also expand what you have, reducing the cost to your own business. This is why customer retention post-pandemic, it should be the focus over acquisition.
Scott Ingram: For links to connect with Janice, get to her ebooks, and to subscribe to her Scale Your Sales Weekly Podcast, just click over to DailySales.Tips/1186. Once you’ve done that. Be sure to come back tomorrow for another great sales tip. Thanks for listening!