When most people think about ‘sales,’ they think about going out and acquiring new clients. And while that clearly is part of the sales function, I would argue that the higher sales priority is to ensure that you keep – and grow – your existing clients.
First, a little background…
Over the 13+ years that we’ve been working with Market Research firms, part of our engagement process has been to understand the revenue history of each client. And part of that is to conduct a five-year revenue analysis where we garner an understanding of our client’s churn rate… that is, what percentage of clients they lose from one year to the next. And for every firm we’ve worked with – even those that proudly claim “We don’t lose clients!” – the churn is always between 20 and 40% per year. Always!
So why make existing clients your number one priority? For these three reasons…
#1) In professional sales, buyers won’t buy from you until they get to know you, then like you, then trust you. And for new sales prospects, this a process and takes a long while for that trust-based relationship to develop.
But with your current clients, you’re already there. They already know you, like you and trust you. They’ve already spent money with you. They know the good work you do. That makes them your best prospects for up-selling, cross-selling, expansion to other brands and keeping them as clients.
#2) In the 40+ years that I’ve been involved in sales and marketing, one statistic has been shared over and over again. And it’s this, “It is 5 to 25x more expensive to acquire a new client than it is to keep an existing one.”
The economics alone, suggest your primary focus ought to be on your current clients.
#3) For every dollar lost because of churn, that dollar has to be replaced just to get back to where you were, let alone think about growing.
Here’s a realistic scenario… Let’s say you work for a $4 million insights agency and want to grow 10% next year (to $4.4 million).
But, let’s also say you’ll experience 20% churn this year, taking your real base down to $3.2 million.
Which means, to get from $3.2 million to your new goal of $4.4 million, you’re really looking at a 38% increase in revenue. That’s pretty daunting! The fact is, the less churn you have, the easier it is to reach your growth goals.
Bottom Line
As you set your goals for 2026, make your first priority to “keep what you got!” Do everything you can to hold onto and grow your current base of clients. Then, when your house is secure, go ahead and focus on new client acquisition.
Good luck and good selling.
Want to learn more about how to keep and grow your existing clients? Join us for the Seller-Doer Workshop™ coming this January. And SAVE $100 when you register by December 12th.