It is very natural to believe that ‘new’ is extremely important and necessary. Studies show that it is in our psychological making to gravitate towards ‘new’ things. We think that something new always leads to improvement. It is believed in the sales business; people in the sales business naturally look for ways to attract new and potential customers to their product.
Of course, attracting and achieving new customers is extremely important; but you should see to it that you don’t forget about the customers you already have. Retaining the customers that you already have is extremely important; it is perhaps, even more, important than acquiring new customers. Good sales training companies in India always include this point in their curriculum. There are many reasons as to why a salesperson should focus on customer retention.
Following are the reasons why a salesperson should be focusing on customer retention: –
- If you consider and compare numbers that are included in customer retention as to the numbers involved in the process of acquiring new customers, you will notice that retaining customers is much more financially safe than gaining new customers. Learning new customers is five times more expensive than keeping the customers that you already have.
- Keeping in mind the above point, you must remember the amount of time, energy, and money you put in to gain the customers that you already have. Losing them will become extremely easy if you don’t focus on retaining them. Sales training in Mumbai always includes retention as a significant part of their coaching.
- Another reason why preservation is important is the statistics. Selling to a customer that you already have has about 60% to 70% success rate, whereas selling to a new customer generally has a maximum 20% success rate.
- Increasing your focus on customer retention by a mere 5% increases your profits by 25% to 95%. It is of enormous importance and explains why retention is crucial to your company’s success.
- Another benefit of customer retention is being able to anticipate your growth in financial terms. If you know that there are a certain number of customers that you can rely on and that they will remain your customers, you can estimate the rate of your financial growth for the next fiscal quarter. It will also help you plan your budget and make a rough plan.
Research has shown that around 40% to 50% of companies focus more on acquiring new customers instead of working on retention. Only 15% to 20% of companies are focusing on customer retention. To improve the statistics, sales training in India includes and focuses on the importance of the conservation of current customers. This training also consists of the many ways that you can ensure customer retention. Some of these retention tactics include retaining customers through psychological factors while some through only some good business as well. If you give your customers the trust and loyalty they need, you will have no trouble in retaining your customers.