Priority Client ? New Acquisition OR Existing Account Happiness !

With multiple responsibilities in hand, organizations, sales heads and individuals often are torn between giving more focus to new Client Acquisition vs Existing Account Happiness.

Creating a balance between the two seems like an impossible task and often times one takes a hit over the other. And, in most cases it’s New client acquisition takes that hit. Agree !

But, here is the fact: Analysts estimate that acquiring a new customer costs anywhere between 6 to 7 times more than retaining an existing one. While it’s important to gain new customers, it’s even more crucial to keep the ones you already have. THEN !

So is account management just customer service?

No. Customer service representatives typically deal with one-off issues, and serve a general customer base rather than being dedicated to a specific group of clients.

Account management and salespeople need to have open lines of communication. When you hand off a new client to their account manager, it’s your responsibility to communicate their goals, plans, and challenges -- basically, a debrief on everything you’ve gathered during the sales process so your account manager can hit the ground running to help the client achieve their goals.

After handoff, account managers should let salespeople know when there are upsell opportunities or potential for new business. Depending on who’s responsible or eligible to make the sale, account managers should broach the conversation and work with sales to bring the new deal in, or close the deal themselves.

Why Customer Acquisition is Important ?

We're stating the obvious here, but increasing your customer base is the fastest way to grow your business and the most obvious way to reach short-term revenue goals. Don't assume it's the only way, however, as up-selling to an existing customer can sometimes prove more lucrative than what you'll make on a new client. And that's before we get to "lifetime value."

Never Ending Debate

The customer acquisition vs. retention debate will run forever. How your company balances its resources should be educated by all the information you have available. To most, this is a difficult task. It's a lot to think about, but once you look at the numbers it's often more clear. If you would like to deepen your understanding of this topic, we are happy to help.

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