Is business development the “right” kind of development?
By Raf Uzar, Penteris
In a world marked by uncertainty and anxiety, marketers and business development professionals are nervously scratching around looking for the next new client.
Business development or retention
A raft of research tells us that it is five to twenty-five times more expensive to acquire a new client than it is to retain an existing one, and, conversely, a 5 percent increase in customer retention can lead to anywhere between a 25–95 percent increase in profit.
Might it therefore be wiser to re-direct business development funding?
Retention and employee development
In addition to focusing on retaining existing clients, the need to focus on the people who are working to retain these clients cannot be overstated. To quote Richard Branson, “Clients do not come first. Employees come first. If you take care of your employees, they will take care of the clients.”
Prioritising employee wellbeing is a crucial aspect of personal and professional growth, and its benefits include:
1. Increased productivity
The American Society for Training and Development (ASTD) found that companies that invest in learning and employee development programmes experience an average 228 percent higher revenue per employee compared to companies that do not.
2. Improved employee satisfaction
The Association for Talent Development (ATD) found that 90 percent of employees believe that opportunities for learning and development are important to them in their current role.
3. Reduced turnover rates
The ATD also found that companies with strong learning and development programmes experience 50 percent less employee turnover compared to those without.
4. Better job performance
The Institute for Corporate Productivity (i4cp) found that employees who receive regular learning and development opportunities are more likely to perform their jobs better.
5. Increased competitiveness
According to the Harvard Business Review, firms that invest in learning and development programmes are more likely to be successful in the long term and have a competitive advantage on the market.
Learning and development is not necessarily better than business development, but it can certainly complement and enhance it. While business development focuses on increasing revenue by expanding into new markets or developing new products, learning and development focuses on improving the skills and knowledge of employees, who support and drive business development efforts.
Only when combined with learning and development initiatives and client retention schemes can business development become a formidable force in helping us expand our business.
Raf UzarGGI member firm
Law Firm Services
T: +48 22 257 83 00
Penteris is a European law firm committed to helping clients keep ahead of the market with a mantra of “getting things done” and “building long-term relations”.
Raf Uzar focuses on firm-wide communication and marketing. He is a member of the UK's Chartered Institute of Marketing, and supports the team at Penteris in his role as Head of Communication and Development.
Business Development & Marketing, No. 14, Spring 2023 l Photo: Flamingo Images - stock.adobe.com