Customer retention and prospecting each call for different strategies. How do you decide which to concentrate on?
If you’re blessed with a high percentage of repeat business – 60% or more – making sure those customers stay happy, and encouraging them to buy more, is most important.
If less than 40% of your customers are repeat buyers, prospecting is critical. While that may sound counterintuitive, some business simply don’t lend themselves to high repeat sales.
If between 40% and 60% of your customers are repeat buyers, then give prospecting and retention equal importance.