Calculating the Cost of New Customers

How much does it cost your company to handle new business?
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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:

  1. Credit checks
  2. Establishment of payments
  3. Internal accounting setup
  4. Internal shipping department setup
  5. Customer indoctrination and training
  6. Salesperson handholding
  7. 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