06-11-2007
65% of business comes from existing customers
News by Adfero for Simply Business - independent providers of business insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
Recent figures announced by Blackmore Quality Management Services show that businesses generate an average of 65 per cent of their total custom from existing customers.
Denis Palmer, a representative from Business Link agrees, commenting that putting time and money into retaining a customer is a more efficient proposition for a business than marketing to potential new customers.
Mr Palmer also advises businesses to ensure communication channels with customers remain open. "There's an old business adage that it's many times more expensive to win a new customer than to keep an existing customer," said Mr Palmer. "You don't want to be … losing all your customer base and then going out and spending on marketing to bring in new people," he added.
Data released by the Chartered Institute of Marketing shows that attracting new customers can increase business costs by a factor of ten, in comparison with the expense of retaining an existing customer.
Business Link is an online business portal, offering self-help information to small to medium-sized enterprises.
Simply Business is a fast, easy way of comparing and buying business insurance and finance solutions.