Why Is Customer Retention So Important To Executives In Business-To-Business Firms

By Justin Hitt, Executive Relations Advisor, http://hittpublishingdirect.com/

Customer retention is perhaps the most important influencer of profit growth, and a key motivator for executives to buy from you. It's so important because it costs so much to influence customers to buy and so little to induce a repurchase. How does your offer help executives of business-to-business firms keep more customers?

1. New customers cost more than keeping existing ones. Help executives make the most of existing relationships by helping their customers make repeat purchases. Existing customers have made an emotional commitment that required a large investment of time to earn.
2. Current customers already know how to do business with them. An executive doesn't have to invest additional resources training the customer how to do business with their company. This saves time and allows them to serve existing customers faster.
3. Satisfied customers are already convinced of value. They have already proven they can serve the customer, and have provided proof. Executives don't have to invest the resources necessary to start from scratch again.
4. They already know who existing customers are. There is no investment for an executive to find an existing customer. Marketing isn't required to find the names of individuals interested or authorized to do business with you, because they already have.

When possible, look for ways to help executives keep ideal customers. If your solution can help them not only create more repeat business, but increase the profitability of that business, then you provide a double-win that makes it easy for executives to say "Yes".

Here are several questions that help identify customer retention opportunities to use in developing new business with executives:

• Which of your products does your customer use regularly? Subscription or automated delivery programs help executives make the most of their investment in existing customer relationships. Help executives create regular repeat purchases.
• What else could customers buy that you offer already? Help executives sell into their existing customer base those things that they might be buying somewhere else. Show where your product identifies these points or makes it easier for follow-on sales.
• Which problems do your customers still face after they buy from you? Often there are unresolved issues that present themselves after a solution is implemented that signal the need for another solution. Identify where you fit in this kind of repeat purchase.
• What does your customer buy first before they buy something else? Identify channels of intention that demonstrate a future need of existing customers, help executives identify ways to anticipate future sales.

When you demonstrate how your solution can help executives keep customers they already have, the value of not seeking new customers is a return on the investment in what you offer. Customer retention is a critical motivating factor to compel an executive to purchase. How are you demonstrating your value in helping executives keep more customers?

© 2005 Justin Hitt, All rights reserved.
/ executive-relations | motivating-factors /

Justin Hitt, a copywriter and executive relations advisor for Hitt Publishing Direct. To contact him, or learn more strategies for selling and marketing to executives, visit http://hittpublishingdirect.com/

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Table of Contents

Seven Motivating Factors That Help Executive Decide To Buy From You

1. Three Ways To Demonstrate How Your Solution Increases Revenues,
2. Why Decreasing Employee Turnover Motivates Executives To Buy Now,
3. Why Is Customer Retention So Important To Executives In Business-To-Business Firms,
4. How Demonstrating You Can Improve Response Time Will Motivate Executives To Buy,
5. If You Can Decrease An Executives Operating Expenses They'll Have No Reason Not To Buy,
6. How To Close With Executives By Demonstrating A Reduction Of Costs Of Sales,
7. Are You Minimizing An Executives Risk By Purchasing With You?,
8. How You Can Help Every Executive Feel Appreciated,