The two universal laws of sales success are: Sell more to existing customers and keep prospecting for new business at all times. Which of these laws is more critical to your success? Both of them!
It is a fact that it costs you less to sell more to existing customers because you have already invested time and money in developing the relationship. Some estimates say that it costs you up to 40% less to sell add on products and services to existing clientele. If you do not stay on top of your customer’s issues and provide them with up to date solutions, your competitors will be more than happy to do it.
However, if this is all you do, then you are at risk for losing market share. We cannot control the environments of our customers. Sometimes things beyond our circle of influence occur forcing customers to change the way they do business and possibly end their relationship with you or reduce their purchases. When this happens, which account do you have in the pipeline that can immediately jump in and take over?
Penetrating further into existing accounts is crucial to maintain your existing customer base. Prospecting for new business is equally important to insure your business against unforeseen reduced demand and consumption by existing customers. New customers provide the fuel to help grow your overall business.
So, do you have a balanced growth plan for your sales territory? Are you taking care of your existing customers and satisfying all of their needs? Are you also scheduling an appropriate amount of time each week to sock it to the competition by playing in their back yard and giving them a fight for their business? If you answered no to any of these questions, then you probably need to re-evaluate your sales plan. A balanced growth plan increases your odds of success regardless of what the market throws your way.
THE BOTTOM LINE
Your best prospects are your competitors best customers and vice versa.