Business Strategy #1 – Build Great Customer Relationships!
I have previously shared that my primary guiding principle is to always put “People before Business” and that we should strive to be People Champions who place greater emphasis on the relationships we have with our customers than the business we do with them.
In this article I’d like to explore that a little more and share why I believe great customer relationships are an essential strategy for every business along with some tips on how to achieve them.
The statistical evidence is well known and widely published and while I’m sure you’ve seen these before, here are some statistics I feel point directly to the importance of great Customer Relationships:
5% increase in Customer Retention can
increase your profit by 25 - 95%
Source: Bain & Co. + Harvard Business Review Research
Probability of selling to a new prospect = 5 - 20%
Probability of selling to an existing customer = 60 - 70%
Source: Marketing Metrics
It costs 6 - 7 times more to acquire a new
customer than to retain an existing one
Source: Bain & Co.
If the evidence is so clear, why do so many businesses seem like they just don’t get it?