IS IT MORE IMPORTANT TO CONVERT A CUSTOMER THAN MAKE A PROFIT?
I had a thought-provoking conversation over Thanksgiving turkey. A manager from a leading car dealership was explaining the evolution of their selling model. He predicts that soon the industry will no longer try to maximize the profit from each sale. Instead, he foresees their main metric becoming customer conversions.
Dealerships have realized that their profit centers are in post-sale services, maintenance and resale, thus, is more important for them to create a repeat customer than maximize their profit from a single transaction.
I’ve been thinking about how this relates to Newlogic’s business.
We’ve recently completed a low-cost “trial” project with a new client. We decided it was more important to convert the client to a customer than it was to make our desired margins. It was a highly successful engagement and we’re currently in talks for multiple major projects. We have the chance for this new work explicitly because “the trial went great, we liked working with you and you delivered excellent results.”
Now, another major CPG brand has asked for a “trial” project and we’ve agreed to deliver concepts in early ’10.
We continue to grow because we have adapted to the economy and competitive landscape. Accepting that we must sell our work in new ways. No longer is credibility and confidence-in-outcomes, as expressed through experience and portfolio, as critical as “what can you do for me today.”
Dealerships have realized that their profit centers are in post-sale services, maintenance and resale, thus, is more important for them to create a repeat customer than maximize their profit from a single transaction.
I’ve been thinking about how this relates to Newlogic’s business.
We’ve recently completed a low-cost “trial” project with a new client. We decided it was more important to convert the client to a customer than it was to make our desired margins. It was a highly successful engagement and we’re currently in talks for multiple major projects. We have the chance for this new work explicitly because “the trial went great, we liked working with you and you delivered excellent results.”
Now, another major CPG brand has asked for a “trial” project and we’ve agreed to deliver concepts in early ’10.
We continue to grow because we have adapted to the economy and competitive landscape. Accepting that we must sell our work in new ways. No longer is credibility and confidence-in-outcomes, as expressed through experience and portfolio, as critical as “what can you do for me today.”
