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.