Most business people, when they think about sales and marketing at all, focus on getting new customers, Yet very few businesses can make it long-term on one-time customers. The marketing acquisition cost of first-time customers is just too expensive for most businesses – it eats up too much of the gross profit.
Businesses must keep and grow customer relationships if they are to thrive. Not only is it more efficient (read less expensive) to communicate with current customers than to broadcast for new prospect leads, but the sales conversion rate is higher with current customers.
If you’re doing a quality job, you have delighted the customer the first time around with your product and customer services, so you’ve established a level of trust. That leads to a greater likelihood of buying additional products and/or services from you.
You need to focus on getting new customers, yes, but you also need to put some attention on keeping your current customers and growing your relationship with them so they contribute gross profit to the business on a continuing basis without the high, offsetting costs associated with acquiring new customers.
In short, you need to be customer-centered, not sales-centered.
“Why You Usually See Three-Tiered Service Pricing”