When purchasing or merging a new company the buyer or the merging party’s must consider what their expectations are. You have to ensure you have a retention marketing strategy in place to help you retain the current client base. There are many things we can help you with when buying a company.
You may decide to merge a business to keep your overheads down, to bring the business under one roof. However, the number one reason to merge/acquire a business is to bring the client bases together.
One of the fundamental mistakes buyers make is to predict that all of the clients from the new company they have purchased will automatically come on board.
In reality a maximum of only 70% to 80% actually do come on board, sometimes less than this. Why? The main reason for this is due to a lack of or poor communication to the new client base. In reality most companies just send out the mandatory A4 Letter to their new client base and tell them they are now their new supplier / broker / accountant etc
As a customer did you chose to buy the new companies products/services or have they taken the decision out of your hands. This is why it is so important to have a retention marketing strategy in place. This strategy needs to kick in the minute the contracts are signed. Early intervention is key. First impressions of your company are everything – you do not get 2 chances.
CMC – Cheshire Marketing Consultants have experienced knowledge, on how to put a marketing strategy in place after growing or buying a company, that will help companies retain up to 90 to 95 % of the new client base just by being more creative in the initial approach.
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Tel: 0161 947 4300