Get New Clients or Keep the Ones You Have?

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It seems as though nearly all successful entrepreneurs paid their dues as a salesperson at some point in their careers, I’m no exception! Years ago I paid my “sales” dues as a financial and insurance specialist with Allstate Insurance. At the time Allstate seemed to focus mostly on new business sales, as was indicated by the compensation differentiation from new and retaining business. It was always frustrating to me as a salesman to have very little of my compensation linked to keeping my customers around long term.

Being a loyal Allstate insured, I’ve noticed a pretty dramatic shift in Allstate’s focus to retention efforts instead of primarily on new business, over the past several years. This is a very wise step for any business to take. Current clients/customers are the most important aspect of our business, it is these customers that allow us to plan for the future and have some security in a troubled times.

Now I’m not saying that new business is bad, in fact the contrary is true. But in my opinion current customers are the most important aspect of any business.

Focus or Fail. You Decide.

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Good point, Clint. It is frustrating for me as a client when companies act like they don’t care whether or not I stay loyal. Bad move for businesses when I would be a continuous stream of revenue if they treated me well. It’s almost always cheaper to keep a customer than acquire a new one.

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