Acquiring a new customer is five times more expensive than retaining an existing one.  And improving retention by just 5% can see your profits increase by anything from 20% to 90%. So why is customer acquisition always prioritised over retention?

Almost all businesses, from the one-man bands to the big corporates, fall into the trap of going all out to win new business but doing so at the expense of their customers.  How many of you have experienced the disappointment of, say, being a broadband customer with a company who are showering new customers in trinkets and discounts but want you to carry on paying as your are as their ‘loyal customer’?  It happens all the time.

There’s glamour, pats-on-the-head and shareholder happiness associated to winning new business but your biggest profits are sitting under your nose if you manage it correctly and focus equally on both.

To get it right, you need someone on your business development/sales team that serves as both a friend and support system to prospects and clients.

Great sales people focus more on the client than on themselves through advocacy, relatability, expertise and excellent listening skills. They build strong relationships that mean they can acquire new business and retain existing customers – increased profit all round!

Is this your team?  If the answer is ‘No’ you’re missing a trick.

If you’d like some help coaching your sales team to increase profits feel free to get in touch.

Every potential customer you have will go through some sort of buying cycle.  There are all sorts of different incarnations of the cycle but, broadly speaking, they will follow the 5 stages below.  The big question I’m often asked is: as a supplier, what is our role in the buying cycle and when should we get involved?  The short answer: every step of the way!

I’ve outlined below each stage of the buying cycle and what you should aim for your role to be, as a supplier, during each stage.

Buying Cycle stage 1: Recognising there’s a problem.

Your role – Get to know your potential customer and ask them what their priorities are.  By building a relationship you can talk to them about their future challenges and build a need.

Buying Cycle stage 2: Searching for solutions

Your role – Listen to your potential customer; what do they think they need to solve their problem?  By understanding their needs you can work together on identifying the issues and help them frame the type of solution they require.

Buying Cycle stage 3: Creating a shortlist of solutions

Your role – Be the service/product expert for your potential customer.  Explain what your product/solution will help them achieve and compare it to alternatives – focus on outcomes.

Buying Cycle stage 4: Finding providers who provide the chosen solution and selecting one

Your role – Be the trusted advisor to your potential customer and the ambassador for your service/product.  Discuss your value proposition and what sets you apart from the others.

Buying Cycle stage 5: Making a buying decision

Your role – By now you will have created a strong relationship with your potential customer, shown that you understand their needs and will have demonstrated how your product/service will solve their problems.  Now you need to make the purchase process as straightforward as possible and focus on the great experience they will have with you once the contract is signed!

Essentially, the buying cycle is the process your customers go through when they realise they have a problem and are looking for a solution.  For maximum success, take control of the process and get involved from the start.

A couple of years ago during an interview I was asked the almost inevitable question “Are you an introvert or an extrovert?” to which I responded “neither”.

The interviewer was adamant that I must be one or the other and it made me question why this should be the case.  It seems to be unquestioned wisdom that the best sales people are extroverts and if you are in least bit introverted then there’s no way you’ll be successful in sales.  However, there are lots of reasons why this simply isn’t the case.  For example, I used to work with a man who’s friendly, outgoing, confident, enthusiastic, great at getting along with people, but couldn’t close a sale to save his life for the simple reason that all that enthusiasm meant that he didn’t listen.  Equally, another ex-colleague of mine was quiet and unassuming but his unthreatening nature and methodical way of working meant he was really rather good at sales – the only frustration being that he could have been absolutely amazing if only he would come out of his shell a bit.

So who ARE best at selling?  Ambiverts.

Ambiverts sit somewhere between introversion and extroversion and display personality traits from both.  And it absolutely makes sense that it is this personality type that makes the best sales people as, ultimately, selling isn’t about foisting your personality onto your client.  Successful selling involves listening to and relating to your client, presenting to them a person they would like to deal with and a company they want to engage with.  The best sales people are the ones who adapt their behaviours to the situation in front on them.

So, which personality type are you?