I didn't create this lesson, I actually was taught it by my bank since 1994, Fifth/3rd Bank, a major lender in the Ohio area. While working on my marketing degree we always focused on the cost of capturing new customers while it is relatively inexpensive to keep an existing customer. See new customers need special deals, special pricing, special offers, recruiting, marketing, and additional costs.
So my lesson begins on a hot Sunday afternoon where somehow my credit card, which I use a lot and carry a balance and pay interest and pay promptly on time, became bent in my pocket in the heat while I was outside. Did I mention being a loyal customer since 1994? So my newly curved credit card, shaped like the blade of a hockey stick wanting to lift a shot high into the net, would no longer swipe at the credit machines.
Simple solution. Call my bank (did I mention I have been a customer since 1994?) and have them send me a new one. Easy enough, a few minutes on the phone and a new plastic card would be on its way and the world would be good again.
Imagine my horror when they told me it was a $10 charge to replace my card, first time I have ever asked for a new card since, let me think, 1994! $10!! Are your freaking kidding me? I have been a 5th/3rd Bank customer since when? 1994! Each month paying my bills on time, spurning offers from other banks, paying interest and using my card. They are going to charge me $10 to get a new piece of plastic that I can use to buy things that I will pay interest on and make them money. Did someone hit me with the stupid stick?
So if you know of a bank that would like a loyal customer who pays their bills on time, with interest, but about once evey 17 years may need a new plastic credit card replaced, let me know. In the meantime I will apply this lesson from 5th/3rd Bank in my everyday life.
So instead of spending thousands of dollars to get new clients, have you thought of working your existing and past customers?