Although the number varies with who’s doing the telling, it’s many times more costly to obtain a new customer than to keep an existing one. The sad reality is, though, no one at the giant mega corporations gets this – or at least their actions belie that they do.
For years, I’ve been trying to get a lower rate from my local phone company, practically begging them to give me a reason to stick around. As soon as I had a viable alternative, I switched providers and cancelled my service.
For the first time in twenty-four years, they asked me, “What can we do to keep you as a customer?” Sorry, too late.
A week later I received an email from them. It seems they pre-approved me for a special rate, a deal they wouldn’t consider giving me as a customer but will if I’m a prospect.
They offered me a “triple play,” a package with phone, internet, and satellite for about what they were charging me for just phone and internet before.
If existing customers were treated with a bit more respect, the sales and marketing folks wouldn’t be under as much pressure to make up for the lost revenue from defecting customers. But instead, they do things backwards, taking customers for granted and offering sweet deals to prospects.
Although rampant at large corporations, this situation isn’t unique to them. Smaller companies can fall prey to this as well. Does this scenario have any implications at your answering service?
Want an answering service that grows without burning out your team or your margins? In The Profitable Answering Service, Peter Lyle DeHaan draws on three decades of owning, running, and advising answering services.
Peter Lyle DeHaan, PhD, has spent his career in and around the answering service industry. He’s owned, managed, bought, sold, and merged answering service businesses as well as consulted, written, and programmed for the answering service industry. Learn more at PeterLyleDeHaan.com.
Get your copy of The Profitable Answering Service today!