If you’re like most MSPs, you want to grow your business. There are two ways you can do that. You can attract many new customers, or you can sell more things to your existing customers. As you may have guessed, it takes less to sell to your existing customers. The research is clear1:
- You’ll spend five times as much to attract a new customer than to keep an existing one.
- You’ll be 60-70% successful when selling to an existing customer, whereas you’ll only be 5-20% successful in selling to a new lead.
- You’ll increase profits by 35-95% if you increase customer retention rates by 5%.
So, if you want to grow your business, which approach should you use? Actually, you need a balance of both. But when you look at selling to existing customers, you need to consider what those customers are going to need moving forward and determine how you’ll satisfy those needs.