Getting New Business? Waste of time!
Sure, every webshop needs new customers on a regular basis. But focussing your efforts purely on generating new business is a waste of time. That is because existing customers can offer you much more than new ones.
In the last three months of the year many webshop-owners diligently go after new customers. As they’re eager to reach their sales targets, they think the best option is acquiring new customers.
But did you know that many times there still can be made more profit by paying more attention to existing customers?
Existing relations versus new business
Research from McKinsey has shown that existing relations even generate twice as much revenue as new customers. And when you think about it, that’s quite logical: these customers have already purchased something from you in the past. The threshold to do so again is much lower for them, because they know you are a reliable supplier and your products are worth having. Altogether you have to invest less time, money and energy to gain a foothold with existing customers.
Originally posted on the zMerce Blog.