In the world of communications agencies where chasing new pitches is the norm, let’s take a look at some of the reasons agencies should focus more on their existing customers rather than chasing the next big win:
1. It costs more to get new clients
Most agencies spend a great deal of money and effort on getting new customers. Pitching alone can cost the agency weeks in man-hours.
They generally spend five to six times more on obtaining new business than they spend on keeping the clients they already have.
2. Long term clients buy more services from you
Over the course of a relationship, a client will continue to learn about your company and the services you offer and will end up buying a lot more from you.
Similarly, as you get to know your client’s business better you will have the knowledge you need to look for opportunities to create services to offer to your client. Either way, a long term client equals more sales.
3. Existing clients will recommend you more frequently
Clients who you keep for a longer period of time will be more willing to recommend you to others.
If you don’t already have a referral process in place then now might be a good time to start because if your existing clients are satisfied with your services they are usually very willing to introduce you to others.
A personal introduction is lucrative and could reduce your cost of sale i.e. it could mean no pitch. And another way to benefit from your client’s endorsements is to ask them for a testimonial – more powerful than any marketing message you could come up with for yourself
4. It costs less to sell to existing clients
A lot of the new business that comes from existing clients is gained in the process of doing other work and excludes marketing time and pitching costs.
5. They let you know if they’re unhappy
Your client has a stake in the relationship. It costs them lots of time and effort to find a new trustworthy agency who is going to suit their needs.
Therefore, if asked, they will usually tell an agency they are unhappy. This gives the agency a chance to put things right, improve their service and win them back before they’re gone.
Do you have any other reasons agencies should be focussing more on their existing clients? Please leave a comment in the box below and sign up for free training.