Be Different or be dead

June 30, 2014

Why ‘buying’ customers is a really bad growth strategy

Source: Pexels

Why ‘buying’ customers is a really bad growth strategy. There’s no such thing as low hanging fruit.

A business plan based on buying a customer base is flawed.

When companies develop their growth plan, they are very tempted to consider an acquisition as a fast-and-easy option.

After all, if you want to grow revenues by $10 million over the next 24 months, why not buy a customer base that would yield that amount?

Buying customers may appear like low hanging fruit to achieve your growth intentions but it isn’t.

On paper, a merger or acquisition might look like it was made in heaven but it rarely is.

The synergies cited and the common denominator between the two organizations often understate or mask the real challenges facing the marriage.

Integrating a new organization into an exiting one is not easy.

Culture, operations, policy, systems and procedures differences make the combination anything but seamless and the acquired customers are often affected.

The difficulties in merging the entities are visible to them; their service is impacted and their loyalty wanes. There is no guarantee they will remain after the dust from the merge settles.

The intended growth plan is not realized.

There is no low hanging fruit when it comes to growing your customer base

Nurture and expand your existing customer base; those current customers who are with you because they know you and care about what you do.

Provide them with more personal solutions; packages of value that will excite them and motivate them to spread your word to others.

Build your business plan around organic growth; shopping for new ones is a risk you may want to avoid.

It is a more certain future for you.

Cheers,
Roy
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• Posted 6.30.14 at 03:24 am by Roy Osing
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