Out With The Old, In With The New?

Everyone wants new customers. Cell phone providers. Banks. Internet service providers. B2B businesses. You encounter ads everywhere – on screens, billboards and over the airwaves – with special offers targeted to attract new customers.

But new customers are actually quite expensive. The cost to acquire them. The cost to educate them about your product or process. The cost of meeting their expectations. The cost of learning this particular new customer’s needs well enough to meet those expectations. (Potentially, learning their industry.) In a lot of industries, the first product or service purchased has a lower margin, if it is even profitable.

There is a reason that “customer acquisition costs” and “lifetime customer value” are determined and reported separately. Profits result when you keep the customer because of how well your product or service solves their issues.

Rather than searching out new customers, an easier way to grow your business is…(Read more from American Machinist).

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