Over the next five days I will submit five reasons why it is essential to follow-up with customers in a down economy. Please free to add your comments and submit additional reasons to do so.
1. Cost Effectiveness: It's been said that it costs five times as much to acquire a new customer as it does to keep a current one. In some industries the cost ratio may be even as high as 20 times more to attract a new customer than selling to your existing customers.
For every customer you lose it will take time and resources to replace just that one customer when that time could be spent enhancing existing customer relationships and providing an environment that encourages customer retention. In the meantime, the loss of a customer also means the loss of revenue for your business.
Tomorrow we will discuss how following-up with customers reduces customer dissatisfaction.