The crux of the post is it is far easier to convert existing clients than to acquire new clients. In other words marketing ROI will be greater if we focus on superior service to current clients than on new client acquisition. Paul discussed in his post about creating an online and offline client community to serve (& market to) the clients well.
While I think academic research on CRM (in both MIS and marketing field) would definitely agree with Paul's perspective that it is more efficient to up-sell and/or cross-sell than to acquire new customers. In my view there are two mandatory precondition for this approach to be meaningful and they are :
- be more than a one trick pony (in other words have multiple products or a product with premium features), and
- 2- have a sizable client list.