Despite a very challenging economic environment, most organizations still have aggressive growth goals that they need to achieve. Typically, the focus of sales efforts and marketing spend is on acquiring new customers. But given the economic realities we currently face, a lot of prospects are reluctant to switch vendors or try a new solution for fear that this increased spend/new partner will not translate to an acceptable ROI.
How do you hit those growth goals? By implementing an analytics strategy that takes a look at your existing customers, you will be able to focus sales and marketing resources in those areas where you will receive the most bang for your buck.
Questions you need to get answers to:
How much time and money do you spend marketing to your existing customers?
If you’re not marketing to your current customers you can be certain that your competition is. Don’t take your existing customer base for granted. They may receive a compelling offer from a competitor and you’re left with a former customer. We all know that it costs far more to bring a new customer on-board than it does to retain an existing relationship.
Do you know if your existing customers go to a competitor for solutions that you provide?
If your customer is spending money with a competitor for a product or service that you provide, maybe the reason is because your customer doesn’t know you have that product or service available. That’s an easy fix. Tell them you have that product or service and give them a reason to switch to you.
Retention models can identify those customers most likely to leave. Cross-sell models can be used to identify which customers have additional resources to spend, allowing you to get a bigger share of their wallet. Lifetime value models can help you prioritize your efforts on those customers that will be the most profitable over the long haul.
While it’s important to continue going after new customers, it is critical – now more than ever – to make sure you are focused on your existing business. Using a well thought out analytics program will put you in the best position to achieve your business goals.