Do New Biz Contests Cause Client Attrition?
In the past few weeks I’ve spoken to media sales managers in radio, tv and newspaper, to discuss challenges they face. Among the many common challenges, one stands out: client attrition and what to do about it.
The first solution many offered to this challenge was “New Business Contests!” If everyone is doing them and attrition is still so high, are they really working? Here are 3 reasons why New Business Contests often fail:
1. Customer Retention falls prey.
Focusing on new business often pushes customer retention to the sidelines. Your best customers then become easy prey for your competition.
We tend to offer new customers better “deals” than clients who have been with us for a while. Think about how a long-standing client, who has done business with you for years spending hundreds or thousands of dollars, would feel if they discovered that you were offering better deals or service to a brand new customer. Something to think about…
3. Too many targets.
Many sellers complain they have goals for each station, digital goals, mobile goals, etc. Add a new business goal to that and you add yet another target your team has to shoot for.
I certainly believe sellers must continually prospect. But as to “contests,” consider focusing on contests that achieve your goal of getting your team to budget – or better yet, over budget – as often as possible such as”Most over Goal” or “First to Goal.” These focus on getting you and your team where you need to be, regardless of whether the money comes from new or current clients. Because when it comes right down to it, do you really care where the money comes from as long as you hit the numbers?
Speaking of that, RDR® offers a number of tools to help your sellers keep current business while adding new business… million$ of dollar$ of business at great rates (our programs are not “branding” or remnant inventory based). Find out more about this, our training, and free tools on our website. If you’d like more info after that, give me a call at 972.522.8570 or send us a message.