Maintaining existing customers is more profitable than attracting new customers.
Another advantage of having long-term customers is that they provide free advertising, by way of promoting the product/service to friends and colleagues.
Boston, MA (PRWEB) July 01, 2014
Precision Sales Engineering, makers of Longitude Unified Sales Planning™, announced today the release of a rolling series of key performance objectives for high performance sales plans.
Managing the Value of Lost Accounts - the first performance objective in the series, focuses management's attention on the loss of revenue as a result of losing existing customers who decide not to repurchase or who decide to cancel existing accounts or contracts. It also tracks the costs of attracting new customers to replace those who are lost.
Precision Sales Engineering CEO, Al Rossini, stated, "Research has found that maintaining existing customers is more profitable than attracting new customers due to a number of reasons. New customers incur start-up costs, they may need more customer services attention and they may spend less than customers who have been with the organization for a long time. Another advantage of having long-term customers is that they provide free advertising by way of promoting the product/service to friends and colleagues."
Loss of old or even relatively new customers can be very expensive, and the revenues that are lost are unlikely to be recovered even with the attraction of an equal number of new customers. The related objective Managing Customer Account Profitability should be referenced when considering the value of lost accounts.
Losing accounts or customers that are not profitable should not be a concern, although the reason that the accounts were lost should still be identified so that more profitable customers are not driven away by the same cause.
About Longitude Unified Sales Planning:
Longitude Unified Sales Planning™ by Precision Sales Engineering is a 'native' Salesforce application built to work seamlessly with all standard and custom Salesforce functions. Longitude Unified Sales Planning™ empowers businesses to create 'living' actionable sales plans for any role in your extended sales organization. Longitude™ eliminates disconnected, 'dead document' sales plans.
Longitude Unified Sales Planning™ includes: ready-to-use (model) Sales Management Plans & objectives; ready-to-use (model) Sales Rep Plans & account portfolios; ready-to-use (model) Account Plans & strategies; and all standard Salesforce functions including Accounts, Leads, Opportunities, and more.
Longitude Unified Sales Planning™ - powered by Salesforce - eliminates the 'risk' of sales rep's floating in the field without a clear sales plan linked to their account base for daily reference, guidance and accountability. Now, sales plans and sales execution are unified in a single system.
