What is the fastest and most cost-effective way to grow sales?
A: Winning new business
B: Selling to existing clients
If you answered B then you are correct. It is 5x more cost-effective to sell to existing customers than it is to win new business.
Why? Your customers already know you, trust you, and like you. Did you know that capturing leads for prospective new business in today’s environment can take 20 – 23 touchpoints, therefore it is a high cost of acquisition and often a longer sales cycle.
Here is a question for you. How much could you grow revenue in the next 12 months if you could only sell to your existing clients?
Most Sales Leaders will take a stab in the dark here as they are not aware of what their SOW (Share of Wallet) is with their key accounts. They’re therefore leaving money on the table! This is often symptomatic of not having a Strategic Account Plan, coupled with the fact their salespeople are more “relationships” focused than true “farmers” who can strategically grow SOW with their clients.
Part of a sales leader’s annual strategic plan should be getting clear on how much revenue will come from existing clients and how much will come from new business.
Benefits of a Strategic Plan:
- Account Growth – strategically determining what products and services the client can benefit from that you are not selling them
- Account Retention – Understanding the client’s strategy and objectives to provide innovation to add value and long-lasting business relationships
- Multi locking strategy – to de-risk the dependency on individual salespeople and buyers
- Stakeholder Profile – understanding key people in the buying committee, their persona, brand biases, the influence they have in purchasing your products
- Call Cycles – getting the cadence right is important. If you are not calling on your clients every 90 days, they are no longer your clients
- Improve Quality of calls with strategic objectives – too many account managers make calls with no purpose or objective. Never make the call without an objective
- Reduce the client churn and prevent your competitors from eroding your SOW
Develop your Strategic Account Plans and Grow your revenue. Retain your client and improve your sales effectiveness.
Get Started By Downloading A Strategic Account Plan
This FREE Strategic Account Plan is the foundation of expanding your share of wallet and enhancing client retention.