Having More Customers Is Not Going to Automatically Save Your Business

There’s a common misconception that in order to stay in business or maybe even save your business, that you need to have more customers.  But this isn’t true – you may need more sales or higher revenue, but you don’t necessarily need more customers.  Thinking about it in such a way is a recipe for disaster.  If you focus too much on “having more customers,” then it will distract you from the things you really need to be concentrating on.

Having “more” of anything isn’t always better.  You may think that if you had more customers, then your revenue problems would be solved, but this is too simplistic a way to view the situation.  First off, if you are thinking “more,” then you probably mean “new” which then asks the question – where does that leave your loyal and current customers?  When engaged in customer acquisition, it’s important to not forget about your current customers.  It’s an easy mistake to make and too many organizations find themselves doing it.  But your current customers will leave if you place too much emphasis on finding new customers because they will feel ignored, and that will then require your business to find additional “new” customers to make up for the ones that are leaving.  It’s not a good strategy.  It’s a waste of time.

The more time and energy you spend on finding new customers or pitching new customers is less time that you have to spend on your current customers.  And they will notice whether it is in the level or quality of customer service or the alignment of the product development with their needs.  This isn’t to say that your organization shouldn’t work to gain new customers, but it shouldn’t be at the expense of your current customers.  They will sense the change when they’ve been relegated to second place and that will damage the relationship you have built with them. 

Having more customers will affect your business operations.  It could mean less inventory or fewer options for appointments; it could mean longer wait times to speak with a customer service representative.  Gaining new customers will alter your business operations in some way and that will be felt by your current customers.  It will change the dynamic.  Truly, any modification in your organization will transform the entire organization whether that means one new customer, one new employee, one new vendor, one new process, or one new procedure.  This can be a wonderful thing for your organization.  Or not.  But understanding that there is a ripple effect if you add even one new customer to your organization is an important fact to consider.

New customers can be a great addition to a business.  They bring with them fresh ideas and new energy but they also bring opinions and preferences.  Are these new preferences and opinions going to change your products?  How will your current customers react to that?  This new energy that your business has been infused with – how will your current customers respond to that?  Sometimes, an organization is in need of a breath of fresh air, but in doing so, what are you sweeping out the door?  Is it something that your organization needs?  Or is it something that needs to be let go of? Adding new customers to your business will change it. 

And even if your organization has no plans to change products or services to accommodate new tastes, there are times when a business can get swept away with public sentiment.  There is a possibility, even with the best of intentions, that a new group of customers will completely redefine your business.  You may need to change processes, computer systems, products, quality of service, etc. in order to meet new demands.  Groups of any kind are dynamic and that includes the group made up of your organization and your customers.  You can lose control if you aren’t careful.

If you do need to upgrade systems, processes, or the like, those items cost money.  Where is that money going to come from?  “Adding new customers” isn’t a single action.  It’s a flake of snow that can turn into an avalanche.  Now, sometimes an organization needs an avalanche, so this isn’t always a negative.  But “adding new customers” is not like adding another book to the bookshelf.  There are consequences to changing your business, in any form, and as a business leader, you must be aware and ready for it.

To be prepared for the inevitable aftermath, you must know why you want to have new customers.  It can’t just be “more” for the sake of having more.  What is the reason behind it?  Is it more sales or more revenue?  Are there ways to get additional sales from your current customer base?  If not, is there a path to include new customers without negatively affecting your current customers?  What are you looking to achieve from having “more?”  Because if having “more” is going to negatively affect your current customers and thus your business, is it truly worth it?  “Growth” is generally considered such a great thing in the startup world, but it isn’t always beneficial.  Weeds can grow easily, but is that helping your garden?  Undirected or misdirected growth can be detrimental to an organization.  Even more so than not making sales targets this quarter.

“More” revenue is a wonderful thing, but is that revenue coming from single sales or repeat sales?  Are they the right (long term) customers for your business?  Because not every customer is a match for every business.  Your organization may want the short-term dollars, but it isn’t always worth the long-term stress if it isn’t the right fit.  Are these new customers going to do more harm than good?  Will they themselves drive away your loyal, long-term customers?  Will your current customers be turned off by the effort your organization is devoting to these new customers?  Do you have to change who your organization is?  This can be a good thing – businesses do need to evolve – but is that what your company needs right now?  Is your organization changing to make new customers happy?  Do you want it to change or are you changing to make others happy?

Do you know why the new customers appeared?  Do you know what they are looking for?  I guarantee they didn’t show up just to help your bottom line.  Too many business leaders act like they do.  Customers, new and current, are not looking to save your business, they’re looking for their needs to be solved.  If you don’t know why they came, how can you be sure that they are going to stay?  You can’t.  You also can’t know for sure that they will be back if you don’t know why they are here in the first place.

Sometimes “more” is better but thinking that “more” customers is all your business needs is short-sighted.  There are consequences to having more customers and your organization needs to be prepared to deal with that.  And sometimes, having “more” is exactly what your business doesn’t need.  If you aren’t providing good service to your current customers, what kind of service do you think you can provide to more customers?  It isn’t as simple as placing more people in a room and doing what you’ve always done.  Even theater productions make adjustments if they add seats. Restaurants must make changes if more customers show up one evening.  This isn’t a strange concept, yet very often senior leadership in corporate offices believe that having “more” is like one solid object that doesn’t affect anything else.

But having “more” of anything will affect everything.