But over time, loyal, happy customers are worth at least ten times the value of their first purchase.
So it might be time to change the focus of your business development reps (BDRs). Instead of spending all their time identifying new markets and reaching out to new prospects, BDRs could be more asia mobile number list productive by dedicating more time and effort to cultivating business expansion with your customers.
Not only is it more profitable, but it’s also an easier sell. While your odds of selling to a customer can be as high as 70%, you have, at best, a 20% chance of selling to a new prospect.
New customer acquisition is also more expensive. The cost to acquire a new customer can be five times the cost of keeping an existing customer happy. And that’s not all. According to Bain & Co, just a 5% bump in customer retention can boost a company’s bottom line by as much as 75%.
In other words, it’s not only less expensive but also more profitable to retain your existing customers. Here are five ways that your sales reps and BDRs can reduce your churn rate, increase customer happiness and grow your bottom line.
1) Cultivate Customer Relationships
We talk about building relationships as a critical component of the initial sales process, but relationship building doesn’t stop with the sale. Strong relationships lead to customer loyalty, and loyal customers spend 67% more than new customers.
After the sale, BDRs need to follow up with customers regularly. Customers appreciate a call to check in. You can also help cement a relationship by asking for feedback. Sales reps and BDRs alike need to encourage customers to vent about any issues or problems they may be having. There are often simple solutions to customer challenges. If not, learning about them may stop problems from festering or open the door to new opportunities.
Asking for feedback serves as a reminder to customers that they have an easy path to problem resolution. Of course, asking for feedback is just the first step. It’s up to the rep to be responsive—listen to what the customer has to say and help provide a satisfactory solution.
