In order for your company to grow the top line you have to win new accounts, sell more to your existing accounts, or raise your prices (a combination of the three is a really powerful recipe for growth).
You also have to outrun your churn. You have to increase revenue faster than you are losing it. New revenue that is won at a slower pace than your churn means that your revenue declines. New revenue that comes in at the same pace you churn accounts means you are running to stand still.
It’s not enough to win new accounts. It’s not enough to sell more to your existing clients. Raising prices can help grow your revenue and your profitability. But if you don’t retain the clients you’ve already acquired, then you are going to struggle to grow your business.
There is no reason to go to all the trouble to win new accounts only to treat them with the same apathy and neglect that causes the churn.
Churn is the enemy. Churn means that you can’t even start making progress towards your goals until you make up the clients that you’ve lost, regardless of the reason. There is no reason to start from behind the starting line.
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Filed under: Sales