If you watch any amount of TV, it’s hard to miss the commercials for the auto insurance companies; everyone claiming to save you hundreds of dollars if you switch to them. 

Why is this important for your home based business?

Because you may be making the same mistake they are.

Let’s assume for a moment that all the companies are using valid information.  That is, if you switch, you’ll save lots of money. 

Where are all the people who switch coming from?  Other companies. 

So what that means is companies are focused on getting new business, not keeping the business they have.  If they were focused on their current customers, then other companies couldn’t be attracting them away.  Right?

Years ago I heard it cost 7 times more to attract a new customer than to keep an existing one.  If you’re not paying attention to your existing customers, you may have new customers coming in the front door while existing customers are going out the back.

For your home based business to be successful, you need to pay at least as much attention to your existing customers as you do attracting new ones.

Written by Philip Cohen