Tuesday, May 31, 2011

Non-paying customers

If we are providing information as a free service to prospective and current customers, we have to consider the value of cultivating non-paying customers.  There's an old rule of thumb that says it costs 6 times as much to sell to a non-customer as to a customer.  I wouldn't argue that selling to a non-paying customer is one-sixth as easy, but if it were, say, half as easy, that would certainly generate a pretty good ROI for building a following, assuming, of course, that you're not spending a fortune doing it.

Non-paying customers aren't just sales targets, though.  If we treat them well, they'll invite their friends, interact positively with our customers, and yes, give us feedback on what we have to do to get more paying customers.

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