When I told a friend of mine how much we spend on acquiring new customers, he pointed out that I should really focus on selling to existing customers.
He is correct that it'll cost 7 times more to acquire a new customer than to maintain an existing customer, and that true profits are coming from current clients. I'll share my thoughts on this prospect in our next issue...but we mustn't mistakenly think that we don't need to focus on bringing in new customers.
Acquiring new customers isn't initially to maximize profits, or to simply make a sale, but to establish a reliable system of generating new clients that will come back and spend more money, the long term growth and security of any business comes from the acquisition of new customers.
Due to competition and other factors beyond our control, every business has an attrition rate. Just think about it, if we aren't bringing in more customers than we are losing, our business is going downhill every day. Neglecting new customer acquisition is a big mistake.
Before you spend any serious money on advertising, answer these four fundamental questions:
-Where will you find new customers?
-What is the first product you'll try to sell them?
-What will you charge?
-How can you best persuade them to buy?
Please don't be fooled by the apparent simplicity of these questions, for your answers to them you can dig a lot deeper. Markets change and shift, the correct answers to the above questions require research, development and testing.
In our feature article, we are going to talk about: "Getting The Most For Your Advertising Money", I hope you can get some good ideas.
Dedicated to your business success and profits.