I had a wonderful customer for many years, who was a great deal of fun to work with. He trusted us to do the work we promised and he always repaid us with more and more business – definitely an ‘A’ grade customer for us.
One day, he decided to move jobs to further his career, and this was a little worrying for us because we had a great relationship with him and moving away could jeopardise our contract.
Because of the longevity of this client, we managed to established a good relationship with his replacement and the two companies continue to work together - happy times.
We followed our beloved contact to his new company, and after a settling in period we re-engaged with him and now have an opportunity to work with him again, albeit for a new client. (He wasn’t surprised to hear from us again, and seemed quite pleased - more happy times.)
It feels really good, that we did a great job for him at one company and he was happy to continue at another. We now have two companies working with us because of this one relationship.
You’ve probably seen the opposing scenario – once you lose a relationship (for whatever reason), it’s very hard to win them back. If that person moves to another company and has the key role of making a decision on your services/products, then this customer is not likely to head your way.
Let's Introduce Some Numbers
Now, if you have a sizeable database then people are likely to be moving jobs quite regularly – it seems this is the norm. In fact, some indicators suggest 20% of your contacts are likely to change jobs.
You do hear of higher figures, like 40%, but this tends to be a characteristic of certain industries.
You’re probably wondering what this has got to do with data quality.
Well, imagine 20% of your B2B contacts moving. Assuming you have a good relationship with 50% of these (why 50%, no real reason, just to make the maths easier - just substitue a valid number for your business).
Let’s make another assumption, from the 20% moving, assume that 50% of these have moved to a company that is not currently a client, but fits your ideal client profile.
Hence, we can safely assume that 25% of those who have moved could be a potential new client (this equates to 5% of your entire database.)
What an amazing new prospect pool! And this occurs every year! This should be music to the ears of Sales Managers, Marketing Managers and Business Owners.
Let’s do a bit more maths and see how much this is worth to you. These numbers are assumptions, but you can use numbers from your own company. It’s the principle that is more important here.
The Importance of Currency of Information
One aspect of data quality is the currency of information, by making your data current you can create substantial new revenues from existing relationships.
My advice is, have a team (in-house or elsewhere) who will track all movers for you – don’t waste any time not doing this, because the numbers show the huge potential you have in front of you.
Assemble your numbers together, as in the above calculation (even if you estimate conservatively) and I’m sure they will illustrate a positive indicator.
So few companies track movers, so move ahead of the competition now, and track movers because it will be worth it.
This can be achieve by using LinkedIn or other B2B networking sites; or asking contacts when they move ‘where they are moving to.’