Calculating the Cost of New Customers
How much does it cost your company to handle new business?
There are many costs incurred after you land a new account--most of them in the form of time used for the following seven procedures:
- Credit checks
- Establishment of payments
- Internal accounting setup
- Internal shipping department setup
- Customer indoctrination and training
- Salesperson handholding
- Management monitoring
To get a good idea of the costs to your company, ask each department what it does when an order comes in from a new customer. You might be surprised at how much goes on behind the scenes.
Excerpted from Creative Selling: Boost your B2B sales
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