I received an interesting question in my inbox by an ardent follower of mine.
Dickson, I like the progress you are making but would love to know your secret to getting such clients. I have been in business but keep struggling while I see #Hostalite grow (in good faith)
And this was my response;
When it comes to growing their startups, many entrepreneurs are so focused on gaining new clients and customers that they fail to effectively address the need to retain those they already have. This is counterproductive considering that it’s far easier (about 50% easier according to Marketing Metrics) to sell to existing customers than to brand new prospects.
Most sources actually say that it costs between 4 and 10 times more to acquire a new customer than it does to keep an existing one. Some sources say cost of acquiring a new customer is over 30 times that of keeping an existing one.
Here is our secret
…… At Hostalite we don’t spend much time and resources looking for new clients, We rather spend that time satisfying and looking for innovative ways of retaining the few that we already have. They in turn refer us to the new clients and in my own experience a referral is almost a closed sale if not an assured business.
1. Never Underestimate the Value of Retention
According to Bain and Co., a 5% increase in customer retention can increase a company’s profitability by 75%. And if those numbers don’t impress you, Gartner Group statistics tell us that 80% of your company’s future revenue will come from just 20% of your existing customers. (Forbes)
2. Implement an Effective Customer Retention Program
3. Avoid Misreading Your Customers
4. Engage Customers Through Social Media
5. Run Relevant Promotions
Otherwise receive our heartfelt greetings from Kagando Hospital