Do you find your focus on current accounts at the cost of acquiring new ones?
On one hand, it’s good business to focus on customer retention. Studies cite that the cost of acquiring a new customer ranges from 5 to 25 times the cost of retaining a current customer.
On the other hand, net new business is essential to organic growth goals. We all know that some level of customer attrition is a given. As sales representatives, we may be experiencing high growth in our current accounts and are quite a comfortable meeting our quota this way.
Focusing on current accounts only has a downside for you over time and for the company. There is a high risk that organic growth goals will not be met without a consistent focus on net new business.
When our focus is on our current accounts we become unaccustomed to selling the net new business. It is no longer part of our daily or weekly routine. And what’s even more challenging – we become rusty at how to sell to companies that aren’t already buying with us.
Why do we become rusty?
Simply put – the skill sets you use to sell to existing customers are very different from those you use when calling on someone new.
When calling on someone new who has not already reached out to you, you must be a master at creating a need or desire for change. With current accounts, you are more often selling the benefits of a different product or service versus the need to change.
The bottom line is a new sales quota that is separate from your overall quota is a great idea, both for you and the company. It ensures organic growth goals are met, and it keeps you sharp and practiced in what you do best, selling change.
