What does it cost to retain an existing customer compare to the cost of acquiring a new customer?
Deciding whether to stick or twist isn’t just a problem for card players. It’s also a common dilemma for small and medium sized businesses. On one hand, you need to expand your sales efforts to attract more leads and open up new customer groups. On the other hand, if you focus too much on developing new leads, you can neglect your loyal customer base, and they might go elsewhere next time they need to make an order? So what should you do? Stick with your client base and focus on repeat purchases, or throw caution to the wind and constantly appeal to new customers? The right strategy is to balance the two.
Perfect Your Sales Funnel to Consistently Attract Leads: Every business needs to have a lead generation and conversion strategy. You can’t survive forever by cultivating a few high-value customers and hoping that they will remain loyal.
In a competitive business environment, customers are constantly shopping around. With this in mind, you need to position yourselves to appear on the radar of potential customers. This means building an online sales funnel that attracts attention to your products, draws people onto your website, entices them to connect with you, and converts that interest into concrete sales. It doesn’t matter how well you treat your customers if they aren’t turning up in the first place, to put some effort into attracting leads, it really pays off.