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Published on February 18, 2009

Ed’s Marketing Genius – Part 1: Winning new customers (where are they?)

Winning new customers – where are they?

You have probably heard (possibly more times than you care to remember!) that there are three ways to grow your business. These are:

  1. increase the number of customers you have
  2. increase the number of times your customers buy
  3. increase the average value of the sale

This advice is all well and good but what it doesn’t show you is where you find potentially high value new clients?

The fact is that there are just four sources of new business and it is important to ensure that you apply the right amount of effort securing new clients from each source.

The four sources are:

  1. Bluebirds – these are people who “happen by and fly in the door”. Totally cold and unexpected customers
  2. Referrals – potential customers referred to you by third parties
  3. New names – genuinely new customers brought in by your marketing activity
  4. Old contacts – these include lapsed customers, prospects that have enquired in the past but you haven’t heard from again etc.

But what percentage of your business comes from these sources? Just take a moment and put rough percentages against each of the four:

  • Bluebirds    %
  • Referrals    %
  • New names    %
  • Old contacts    %

Now compare your results against the results of a survey undertaken with 6000 businesses who were all asked the same question, and see how close your results match:

  • Bluebirds   5%
  • Referrals   15%
  • New names   20%
  • Old contacts   60%

Interestingly enough every business we ask this question of gives us pretty similar results! So if this is accurate you can immediately start to see where effort priorities need to lie to grow your business – both in the short-term and in the longer term!

In coming posts we will look at each of the four sources of new business and show you cost effective strategies to maximise the business available from each.

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