than it is to cope with change. Many suppliers don’t really keep on their toes with their established accounts. Usually they put more value on acquiring new accounts than on keeping old ones, even though the cost of acquiring new accounts almost always far exceeds the cost of keeping old ones. And of course, many successful suppliers become overly satisfied with their positions and get careless. When they stop bringing fresh ideas to their established accounts and stop keeping in close personal touch, a gap starts opening up between the best and what they’re giving. This means that the supplier isn’t helping the customer keep up with change anymore. The customer is falling behind and losing profits. The wider the gap grows, the more likely it becomes that someone in the competition will discover it, charge in through that gap, and capture the customer’s business.
If you have established accounts, keep in close personal touch with them, make sure you keep them posted on all new developments in your industry, and stay alert to their best interests. If you’re on the prowl to take over some of the competition’s accounts, here’s an effective way to continue when you hit their resistance to change.
You’re selling service, FM radio advertising spots to be exact. Your station is K-WHEE. Red Eye Soap, a major radio advertiser in your market, plays all its spots on K-TOO, a competing station. You’re going for the business in a meeting with Jane Mota, Red Eye’s advertising manager. (With many products and services, you’d have to ask what they’re using now. In this case, you know because you listen to the competitive stations to see who’s advertising on them.)
“Are you satisfied with K-TOO, Mrs. Mota?”
“Oh yes. They do a wonderful job for us.”
She wants to discourage you so you’ll be easier to get rid of.
But you have a plan and press on.
“How long have you been using K-TOO?”
“About three years.”
“And before K-TOO, did your firm do any radio advertising?”
“Red Eye started on K-ONE in the late 1990s, I understand.”
“May I ask how long you’ve been Red Eye’s advertising manager, Mrs. Mota?”
“I’ve been here five years.”
“Then I’d probably be safe in thinking that you had a great deal to do with the switch from K-ONE to K-TOO.”
“Yes, you would.”
“And you recommended, or made, that switch based on quite a bit of research and analysis, didn’t you?”
“Yes, on a tremendous amount of research. We made a detailed market analysis of ten stations. Our studies convinced us that our FM budget would influence more potential buyers on K-TOO than on any other station.”
“You were looking for sales potential when you did your study three years ago, weren’t you?”
“Certainly.”
“And the results have lived up to your expectations?”
“Yes, they have. We’re very satisfied.”
“Tell me, since you received greater performance by considering, and then making, a change three years ago, why should you deny yourself the opportunity to repeat the process? Your research back then led to greater profits for Red Eye and greater professional prestige for you personally. You did it once, so the possibility must exist that you can do it again, don’t you agree?”
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