I have heard many times over the years that it is 7-14 times easier to win new work from existing clients rather than work from new clients. But, why is this?
1. Trust and credibility
Trust and credibility need to be established in your potential client’s mind, before they will buy services from you. If your previous work is of a good standard and quality, trust and credibility are already established in existing client’s minds. As well as shortening the buying cycle, trust and credibility are generally key buying criteria for a client – and having already established this with your existing clients, you will already have an advantage over your competition.
2. Limited competition
There is a strong likelihood that any new business which comes from existing clients may just be handed to you on a plate… no competitive proposals, tendering, pitching…
3. Minimal research
When you are targeting a new client, you invest time in getting to know them, understanding their needs, researching their market and competitors. This work is already completed for existing clients.
4. Easier to find new opportunities
When a client trusts you, they readily talk about their business and the challenges and opportunities that they are facing. It is then easy for you to match these challenges and opportunities to a product or service you offer. For example, off the back of a conversation with my accountant about taking over my books, he also picked up the task of completing my VAT returns. All he asked was, do you want us to do you VAT returns as well? It was as simple as that.
5. Limited marketing activities
A large proportion of the cost involved in winning new clients comes from marketing – building awareness and interest, lead generation etc etc. With an existing client you may not need to do any of these activities. Often all it takes is a regular conversation with an existing client. I am sure you have all heard the lines, ‘oh, while you are on the line, can you help me with….’
What are you doing to develop new business with your existing clients? Who out of your existing client base could you call today?
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