Why do customers change suppliers? Are you losing key accounts? It costs more money to acquire new accounts than to maintain current accounts. Ken Wong uses an insurance company as an example of how increased volume does not always equal increased profits.
The virtuous cycle is explained. Don’t think of your customers as one sale but a stream of sales. If you spread the cost of servicing a client over a series of sales, you can spend more money to maintain the account. What else can you sell to your current customers? Ken discusses why “front of store sales” are so important.
We have a winner!
Dan Yurchuck of High Park Pharmacy is the winner of this week’s prize draw. Dan has chosen a one-year online access subscription to the Natural Medicines database, a one-year subscription to Canadian Business magazine, and a one-year subscription to Money Sense magazine for his prize package.
