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Think about the last time you called your cell phone carrier to ask a question about your bill. Now, I hope you are smiling. Odds are, however, that you just twitched in anger from remembering the long hold time, the frustration of dealing with a customer rep who was reading off a script instead of speaking with you, and the annoyance of being put on hold and transferred from one agent (who didn’t want to deal with you) to another. Now, based on this experience, how likely are you to refer them business? Probably not very likely. More than that, White House Office of Customer Affairs shows that you’ll probably talk about your negative experience with anywhere from 9-13 people. OUCH!
So, satisfying clients is good for your reputation. But, what does it have to do with sales?
McKinsey statistics show us that 70% of buying experiences are based on how the customer feels they are being treated. So, if you are simply chasing after new business and then not satisfying your clients, you aren’t just hurting your reputation, you’re stunting your company’s expansion. Too many of us have been brainwashed into thinking that, as business owners, our sole purpose is to bring in new business.
Newsflash: If you reduced your sales activity by just 30% and devoted that time and money to satisfying current clients, you would be receiving easy referrals, establishing yourself as a leader in your industry, and cultivating loyalty among current clients. Bain & Company statistics show that a 5% reduction in customer defection can increase profits by 25-95%.
So, why are you exhausting yourself by constantly chasing new business?
Don’t Feel Bad. No One Told Me About The Kool-Aid, Either. In a culture that breeds consumerism, our natural impulse is to always want more. We’ve been taught that once we acquire something, it usually loses value right away. And, the best course of action is to get a new shiny object instead and throw out the old one. Think of the last mobile phone you purchased. Was it because you “needed” it, or because you wanted it? We use the exact same methodology on our clients. We get a client, pass them off to someone else, or simply put them on the back burner, then go out and look for more business.
Experiment: For the next week, instead of spending time at meetings trying to get new business, schedule calls or meetings with your current clients. Spend the time making them feel special and looked after.