The Price of Bad Service

"For two years, FreshDirect stopped soliciting new customers to work on better serving its existing patrons. That strategy seems to have paid off: A loyal core of repeat customers — about 45,000 to 50,000 in all — now generates two-thirds of the company’s revenue. Richard S. Braddock, chief executive, reports that the company had its first profitable year in 2009 on revenue of $250 million and he expects the company’s 2010 revenues will rise to $300 million."

Reprinted from the New York Times, Thursday August 19, 2010 by Jessica Bruder

I am constantly reminding my clients that revenues primarily come from their existing client base.  How they treat and service those clients who opted to work with them in the first place is key to that magic in business called "repeat revenue."

This is why Strategies for Growth exists. I wish to beat our own drum a bit here. We create Client Retention Programs designed to keep your good clients repeat customers, convert the bad to good and fire the ugly. Our success rate has been an overall up-tic in revenues of over 250%!

It is more cost-effective to maintain and resell your existing client base than to constantly try to acquire new customers.   For a review of how Strategies for Growth can help increase revenues from your existing clients, give us a call at 818-512-6477.