Wednesday, July 18, 2007

The Value of a Customer

As I was writing my last blog about increasing sales revenue, I thought about how important it is to maintain a healthy relationship with your existing customers. Again, existing customers are the lifeblood of your company's revenue. I know from personal experience as well as from reading various business books that the costs of a new account are significantly higher than the costs associated with fostering an existing account. This reinforces the importance of nurturing your existing accounts and doing everything possible to preserve them.

Think of the value from:
1) Being able to reference a healthy account when you are prospecting.
2) Knowing you have a steady flow of business.
3) Having an exclusive relationship and the credibility it provides you.
4) Receiving word of mouth referrals and public relations.

As a good friend once put it to me, the value of a customer is paramount.

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