If you live in the B2B world, you would agree that new logo acquisition, with its typically long sales cycle, is hard and expensive. A single-minded focus on the top of the funnel, pursuing new clients, intuitively seems like the right thing to do. But this approach overlooks the opportunity to capitalize on companies that are already on your side. A strong focus on client retention and expansion can be a strategic differentiator.
Not only is expanding and growing existing accounts cost-efficient, when done right, it can also fuel new logo acquisition as well. For example, most of us who buy products and services on the internet look at online reviews. Imagine a virtuous cycle where you sell to a handful of clients and get stellar reviews, which in turn fuels new sales. And because the customers who have already bought are so delighted with what you’re selling, they line up to buy from you over and over again. It isn’t as farfetched as some people might think. It starts with a conviction to deliver quality products and excellent service.
That’s easier said than done, you may say. True enough, but nevertheless, it’s a fair description of the strategic imperative we now face.
Here’s a simple framework to get you started:
Where do we stand right now?
Before we proceed, there are certain basics we must get out of the way. If your company has product or service issues that you haven’t yet found the time to address, then please sit up and listen. Quality is an attribute so fundamental that a lack of it will kill the entire business. There are no two ways about it: Good quality products and services are the table stakes that get you into the game.
Assuming you already have a wonderful product or service that customers love to use, it’s time to focus on the greatest lever in business growth: repeat sales and upsells to existing customers. We’ll look at a plan for doing this in our next installment on this topic. Stay tuned for Part II.
– Gaurav Dhy, Director of Customer Success, BuzzBoard