In tune with the world at large, business conditions today are some of the most challenging ever experienced. Never has there been such an imperative to do more, better – but with less. So, for many business leaders this means a concerted push to focus resources where they have the biggest measurable impact and return – invariably at the cost of other areas. This is not always easy nor comfortable.
One business strategy mainstay remains the customer. From banks offering cash to new account holders to supermarkets’ discounts – attracting new customers is the primary aim for many leaders across sectors. Shareholders like customer acquisition numbers to rise and leaders want to keep shareholders happy.
However, chasing the new over the existing is not necessarily the best strategy. Rather, leaders should pay more attention to maximising the value of their existing customer base. It is far more cost effective to accrue value from your current customers than acquire net new.