“Entrepreneurial Expertise”
by Dawn Fotopulos, Founder, DF Counslting
January 1, 2009
“In this marketplace, don't focus too much on client acquisition—on new client acquisition—focus on keeping the clients that you do have, especially the profitable ones. Did you know that a 5% improvement in retention of a profitable client can yield between a 25% and 85% improvement in net bottom line?
The second thing you need to do is make your clients your strategic partners. They're your eyes and ears to the marketplace. They can help you tap into when the inflection points are happening and what the new trends are to make you more nimble and responsive.
The last thing you need to do is you need to take a look at your client databases. Did you know that 30% of the information in every database is outdated within 90 days? Well, if you update your database, you make it current, you'll know who your profitable and unprofitable clients are and you'll be running the business; the business won't be running you!”
