In recent weeks, I’ve encountered both dismal and outstanding examples of customer service. While companies invest heavily in marketing to attract new clients, they often neglect their existing ones. It’s surprising how frequently basic customer service is overlooked, despite its significant benefits.

Take one of our software vendors, for instance. For years, we’ve received a small loyalty discount on our annual renewal fee—a token of appreciation for our continued business. This year, however, we were informed that the discount would be discontinued. The next day, I received a marketing email from the same vendor offering substantial discounts for new customers switching from competitors. When I inquired, our sales rep explained that funds had been reallocated to support this competitive displacement program, at the expense of the loyalty discount. Essentially, our long-term loyalty was being penalized to attract new clients.

Unfortunately, this isn’t an isolated incident. Years ago, when we used DirecTV, we found it more beneficial to cancel our service, wait and re-subscribe after three months to take advantage of new customer discounts. Many of us can share similar stories.

Don’t get me wrong—investing in new client acquisition is crucial for growth. However, the details matter. In agriculture, focusing solely on rapid growth without a solid foundation results in weak trees unable to withstand storms. Similarly, businesses that prioritize new growth at the expense of existing clients often struggle to maintain healthy, sustainable growth.

Focusing on exceptional care for our current clients yields several benefits:

• Lower Attrition: By prioritizing wonderful service to existing clients, they are less likely to leave. If you gain three new clients but lose one, your net gain is only two. Reducing attrition improves your overall growth.
• Better Employee Retention: Happy clients lead to happy employees. When team members are empowered to support clients, they find their work more fulfilling and are more likely to stay.
• Enhanced Public Perception: A strong reputation, bolstered by satisfied clients and employees, makes a large impact when potential clients are consulting with you.
• Lower Cost of Sales: Retaining existing clients is generally more cost-effective than acquiring new ones. Adding three new clients while losing one is more expensive than simply adding two.
• Easier Sales: Positive word-of-mouth can lead to prospective clients who already trust you. I have walked into meetings with prospective clients and they simply state “I have been asking around and you have a great reputation. I trust that you can do what needs to be done and that you will treat me fairly. When can we get started?” How much easier does it get than that?

Initially, I believed that exceptional customer service required extraordinary efforts. However, we’ve found that it often comes down to simple actions: listening to clients, understanding their needs, communicating clearly, and delivering on promises. While it may seem straightforward, many businesses get distracted by other priorities and fail to take care of their customers.

How do you ensure you’re delivering exceptional customer service? Have you found it beneficial for your company’s overall health and client relationships?