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  • Category: Miscellaneous

    For marketing companies which one is easy: Retaining old customers or creating new ones?


    Do you think a marketing company should focus on retaining old customers or try to acquire new ones? Explain with supporting views which should get priority.



    Marketing companies purely survive on two things. One is the quality they serve and second is the service they provide. If the two things are good and no complaints, then they would certainly retain the existing customers and they in turn recommend the company to other customers. But some marketing companies are not following this principle, as they want to try new customers every time and are not keeping the existing customers happy with good service. What is your view on this? Should they concentrate on existing customers or go for new ones?
  • #615148
    The product acceptance by the customer is very important. The quality of the product and after sales service only will make the company retain the customer. If the product is not performing well the customer will go to another manufacturer. Similarly, if the service after the sale is not good also the customer will look for another supplier. So for the continued share of the market for our product keeping the ole customer is very important. If we lose the old customer, this news will go as word of mouth across the market and getting a new customer will be very hard. So retaining the old customer is the primary requirement for any marketing company. Once you are able to retain the old customer then when you approach a new customer you can refer the name of the old customer which acts a catalyst for you to get a new customer. So my first preference will be to retain the old customer and then trying for a new customer and higher share in the market.
    drrao
    always confident

  • #615152
    As a marketing company, I feel it is important to retain their customers and also should go for new ones. Every companies look for an increased profit and also they wish to spread their brand to wide range of areas. The marketing companies should first try to retain their customers by keeping up the quality. I have come across few companies who grab more and more customers and lack in their quality. They also struggle to satisfy all the customers and end up losing everyone. So it is important to start from low phase with few customers, provide quality work and when they enter into a phase with no compromise in quality even after acquiring new customers they can go for finding new customers.

  • #615153
    No company will want to get rid of its old customers. If a company does not have old and loyal customers, then how will the new customers trust the company? It is always advised retaining the existing customers as they can turn out to be loyal customers. Also, they will spread their feelings and word of mouth advertisement applies here. Getting new customers involves lot more effort but every organisation does need new customers as well.
    Regards
    Chitra
    "Do not give up, things might not favour you always"

  • #615176
    In our career we were first taught that "A satisfied customer is the best advertisement". It bis always prime to retain the existing customers. The cost of retaining the existing customer base is relatively much lesser than gaining new customers.

    Conserving is more prudent and economical than creation. But a growing and dynamic organisation should also have more and more new customers. The new customers also are going to be 'old' customers soon. If the organisation has a product or service for which there can be repeat demand, then existing customers are to be considered as equal to new customers. The repeat will be a prof for the quality of the service or [product. If there is no repeat, then it can be taken that the service or product is not good or affordable.
    So existing customers are also a source of correct feedback.

    Hence it is very important to conserve and cultivate existing customers for any marketing company , unless it is a 'fly-by-night' entity or does not have any product or service which will have a repeat order.

  • #615298
    Any brand or company has a database of customers who are regularly updated and maintained as they are important to the client base of the company. Even when we walk into a small textile or garment shop that we shop frequently, the shop owner takes care of us as we are his 'regular customers', gives an extra 5% discount and enquires about how we are. Certainly, the bigger brands will be offering perks and discounts for old customers. For instance, when you do frequent trips on Ola within 7 days ( an airport drop + long journeys), Ola sends a discount code as a token of appreciation.This is a marketing strategy to encourage regular users. Some companies who want to reach out to the wider untapped market keeps issuing offers after offers for new customers and forgets about the existing ones. This is commonly seeing in some Indian appliances/insurance companies, you call to report an issue, you have to wait endlessly, the same if you call for a new purchase, you immediately get a callback and an agent even offer to visit you. They forget that clients are also smart, who will definitely not recommend such groups to their friends.


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