Why Account Managers Are Not Just Account Managers

It costs much less time, emotional energy, and money to sell products to an existing customer than to a new customer. Selling to and taking care of existing customers is important. You don’t want to be adding new customers in the front door while your existing customers are walking right out the back door!

That being said, you should still prospect for new customers. Even though it is easier to sell to existing customers, and they are extremely valuable, it is still important to go after new customers.

Two Reasons Why:

  1. You will lose some existing customers and they need to be replaced. Inevitably industries may change, and that business that you have worked with for ten years may shut their doors. Businesses do close. It is entirely possible that while you may have had a great relationship with a manager, he leaves for whatever reason, and the new guy wants to use the providers that he already has relationships with. Over time, if you are not adding new customers, the volume of customers that you work with will decrease.
  2. Even if the total number of customers that you manage stayed the same, over time the average revenue per order from existing customers would decrease. Think about it. If your customer is already using your product, and they have purchased larger revenue products from you (and those products are made to last), then what you have left to sell to those customers are smaller ticket items. When we looked at the data, the average revenue per existing customer’s purchase order is often significantly less than the average revenue of a purchase order made by a new customer.

So, don’t get too comfortable just servicing existing accounts. Don’t get out of the habit of going after new business. Don’t let those muscles atrophy! Exercise them. Fill your funnel with new prospects so that any business that is lost is always replaced. Grow and never stop seeing yourself as a salesperson!

What are some ways you drive new business? Comment below!

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