retention is easier

Quick question is it easier and cheaper to: 1) get new customers; or 2) keep existing customers? Obviously, it’s easier to keep existing customers. They know where to find you, what you offer, your level of service, etc. They already know that pros and cons of doing business with you and choose to do business with you anyway. Getting new customers requires making them aware of your business and what you offer and them convincing them to come visit and then convincing them to buy something and then demonstrating enough value through price or service that they choose to come back.

So why, why, why do businesses put so much emphasis on getting new customers, often at the expense of existing customers? Some industries in particular seem to have a business model that is solely focused on getting new customers from their competitors while ignoring their former customers who have been seduced away by a competitor. Huh? I see this most in subscription based businesses: cable/satellite TV, mobile phones, etc. The thought seems to be once you sign up you are captive and therefore require no attention. They are too busy trying to woo dissatisfied customers from the competition to worry about their own dissatisfied customers. They confuse contract induced commitment with satisfaction and loyalty.

Likewise, is it easier and cheaper to retain existing employees or to find and hire new ones? If retention is easier and cheaper, do we treat employees like we want them to stick around, like they don’t have a choice and have to stick around, or do we treat them like we don’t care at all?

It’s been said that the customer experience will never exceed the employee experience. What are your employees experiencing? Are they treated as well as we would want to be treated as customers? If we gave our customers the level of support, attention, and communication that we give our employees, would we still be in business?

Let’s spin this around: how do you want your best customers treated? What needs to be done to provide employees with the same level of internal support and service?

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