” Strength and growth come only trough continuous effort and struggle ”
Austin Reed, Virgin Megastore, Toys R Us are names familiar to many of us. The common between all of these is – that they are not on high streets anymore. Many reasons can explain their failure to evolve. The most common – the retail sector seems follow a n the typical S like life cycle curve. Usually, retailers expand quickly in the beginning, once the most attractive locations are taken they naturally go to less attractive ones undermining the profitability of existing stores and increasing operational expenses.
This reminds me a lot of my career in the financial industry. In many cases organisations and their sales people focus mainly on signing up new clients instead of spending some time to develop existing one and ensure that their technology solutions are used.
Growing a financial technology business is specific. It requires a strategy that give a central place to the client needs, product , vision how to create further engagement, lock in the existing revenue and generate additional revenue.
Systematic focused efforts usually bring results. My experience in the financial technology industry suggests that spending time with existing customers can be beneficial. It helps you create brand awareness, gather product feedback and foresee future client needs. Existing customers have the ability to create a tremendous impact on the future growth of your business. Spending 50% of your time with selected customers will yield remarkable results. Your products will improve, you will find additional ways to generate revenue and learn how to keep your existing revenue. Additionally, the word of month effect will bring additional customers whose acquisition cost will equal to zero. Finally, it is worth mentioning that the cost of acquisition of a new customer is 12 times higher than keeping an existing one.
Systematic approach towards business expansion is the only method that ensures your organisation does everything it controls to continue its expansion. Systematic business development approaches become more effective when sales leaders fine tune them carefully considering variables such as industry, geography, culture and product.