For established or growing businesses there’s a big choice the CEO or owner has to make. Are you going to pour more resources into getting more customers or are you going to figure out how to serve the customers you have better and more often?
Earning More Customers is Hard
We’ve been taught however that this is the answer. Build a sales team. Spend a percent of revenues on advertising. Keeping spending until you exponentially grow the business then raise the revenue target and do it again next year.
Serving Your Existing Customers Can Work
There are some famous examples of companies that spend no money on marketing or sales because they’ve crafted a product so good their followers market it for them. Check out the book by 37signals two founders (makers of the popular project management tool called Basecamp). Sure they had to initially gain awareness, build trust and craft a story that resonated. And now they have a group of loyalists that are evangelizing 37signals products. The company then spends more time developing new, fantastic products for their fans and less time on the hamster wheel of chasing sales. They focus on serving their existing customers better.
Do you want to sell more to new people or do you want to sell more to your people? You get to choose if you are selling a product or building a following.