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How do you answer the question “What’s New”?

How do you answer the question “What’s New”?

September 3, 2013 @ 9:15 am
by Vance Morris (Disney Guy)

One of the top 5 reasons a client leaves you is sheer boredom and a feeling of indifference from the company.  In some survey’s that number is as high as 68%. Now before you say “But my clients don’t leave me”, take off the rose colored glasses, wake up and smell the negative balance in your bank account!

Why do you think there are over 100 versions of Monopoly?!

Parker Bros., maker of the game, wants you to keep buying and wants new and different clients.  I can tell you that the Sponge Bob Squarepants edition is appealing to entirely different market than“John Wayne Collectors Edition”.  And the Berkshire Hathaway Diamond Edition is certainly appealing to an entirely different crowd.

“A client is an asset that needs to be invested in”

Now what does a board game have to do with you business?  But before we answer that question, let me frame it with this statement “ A client is an asset that needs to be invested in”  And if you are not constantly and consistently investing into your clients, they will leave you for the next shiny brass object.

Think about how many versions of Tide Laundry soap is out there… Baby Fresh, Lavender, pink box, blue box, spring fresh, fresh spring, green sparkles, blue sparkles, and on and on and on…  They keep changing and tweaking and adjusting and “improving” the formula.  It is still laundry soap.  But it keeps consumers coming back for the “new and improved” version.

Fast Food restaurants are ALWAYS coming up with the next “new thing”.  Taco Bell and the Dorito Shell taco, Wendy’s and the T-Rex Burger.  Which was actually banned by Corporate Wendy’s muckety mucks.  Yep,,, A Wendy’s franchise in Canada created a 9 patty, 2 pound 4 oz burger that was about 3000 calories with 200 grams of fat.  They actually were selling 2-3 of these things a day at $21.99 a pop!!!

The point is, businesses need to constantly repackage, repurpose, do a little plastic surgery and create a product for certain niches.  Sponge Bob monopoly is going for a different niche customer than Berkshire HAthaway and Warren Buffett game boards.

Every Client That Leaves…

… costs you more than 2 times the amount to acquire them.  The cost to acquire the client to begin with, lost revenue when they leave and the cost to acquire the new client to replace them. If your client acquisition cost is $1000.00, then every time you lose a client that could have been prevented, you lose over $3000.00!  Multiply that by losing 10 clients a month and you are talking big losses.

So… How do you answer the question “What’s new?”

  • What are you doing to invest in your clients so that they do not leave?
  • What are you doing to create a titanium fence around your herd, keeping your clients in and your competitors out?

IF you are having trouble answering the question, “What’s New? take our Service & Marketing Client Profit Index Assessment.  Click here It won’t cost you but a few spare minutes of time.  It could help you answer the question, What’s new?

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