"The problem with these food-related accounts" said
my interlocutor, "is the people I open the account with tend to leave and
be replaced by people who don't know me and give the account to one of my
competitors. I have to keep going back in and reselling the same account over
and over."
"How often do you get a call from one of your old contacts
asking you to come and service his new employer?" I asked.
"Almost never."
"Instead of losing accounts every time your old contacts
change jobs" I said, "you should actually be so close to them that
when they go to a new employer you sign up the new employer while also
retaining their old employer. The fact that this isn’t happening in your
business tells me you aren't staying close enough to your contacts to know when
they change jobs or keep their loyalty when they go to work for a new
company."
"Tell me something,” I said, "how much does it cost
you to acquire a new account? Food. Lodging. Gas. Technology. Estimated cost of
your time or an account executive's time. What's the total cost to
your business of acquiring a new account?"
My
interlocutor didn't know. Therefore, he had no idea how much time and money he
should be prepared to spend to better retain his accounts, and, he had no idea
how much he could lower his cost of acquiring a new account if he was close
enough to his contacts to stay in touch with them as they transition to new
companies where they can become his "insiders" who help him land the
new account.
----
If you're in business and you are making New Year's Resolutions, make this one: "I resolve that in 2015 I will learn my cost of acquiring a new account and that I will spend the necessary time and money to retain the accounts I have."
I wish all my readers a prosperous 2015.
Higginbotham At Large does not read or publish pseudonymous or anonymous comments. When you click the "submit" button your comment is not yet published it is merely sent to me for my approval or deletion. Commenters who hide behind "handles", nicknames or other pseudonyms will not see their comments published here. If readers won't know who you are, I will delete your comment. No Ring of Gyges for you. I like email addresses that include the submitter's actual name like mine does: JosephHigginbotham@gmail.com.
If you're in business and you are making New Year's Resolutions, make this one: "I resolve that in 2015 I will learn my cost of acquiring a new account and that I will spend the necessary time and money to retain the accounts I have."
I wish all my readers a prosperous 2015.
Higginbotham At Large does not read or publish pseudonymous or anonymous comments. When you click the "submit" button your comment is not yet published it is merely sent to me for my approval or deletion. Commenters who hide behind "handles", nicknames or other pseudonyms will not see their comments published here. If readers won't know who you are, I will delete your comment. No Ring of Gyges for you. I like email addresses that include the submitter's actual name like mine does: JosephHigginbotham@gmail.com.
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