Business Tips, Interesting Fact & Ideas

Correct me if I'm wrong … I would estimate that winning new customer's business is about 5 times as hard as picking up orders from your existing customers. Leakage can be taken as business of your existing customers that has been successfully won by your competitors, from under your nose. 

Remember, your prime customers are your competitor's prime targets.
Considering this, the following is interesting:

Example 1:
Revenue Growth Target 20%
Leakage (no protection effort) 15%
35 pts of extra effort is required. 

OR

Example 2:
Revenue Growth Target 20%
Original Leakage 15%
Leakage Protection Effort 10% (= 2 points of effort)
27 pts of extra effort is required.

Note: The 8-point difference (Leakage Protection Effort) is protection of existing business (1/5 the effort/result).

Note: Extra effort overall, for the extra business required in E.g. 2 is 77% of E.g. 1, (27/35).

How many managers have you heard commenting about "not getting enough new business", I wonder what their leakage rate is? Sure, every company has a small leakage, but some emphasis should be placed on leakage minimisation. The 'bucket' will fill faster with a smaller hole!