Customer-Driven Disruption

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CUSTOMER-FOCUS STRATEGY 1: WIN WITH CURRENT CUSTOMERS BEFORE CHASING AFTER NEW ONES

CURRENT CUSTOMERS HAVE HIGHER revenue and profit potential than new customers. And if you meet their needs better than the competition, they’ll buy more from you. Research shows that existing customers are far more profitable than new customers—five to twenty-five times more profitable.¹ New customers are expensive to acquire and typically produce less revenue once you do acquire them than satisfied current customers would. Yet, when faced with declining revenues, most companies focus on finding new customers. This is like pouring more water into a bucket with a hole in it. If your customers are draining away, fix the bucket first, or get a new one! But most ...