Aside from providing great customer service, there are many ways to increase sales to existing customers. This article explores the importance of marketing to your existing customers first, before finding new prospects and 10 techniques you can use to do so.
Your customers are the easiest, most profitable group to which you can market your business.
They are your fastest source of additional revenue and profit. So, when was the last time you made a concerted effort to sell more to them or even to contact them? They may well be frustrated that you don’t communicate with them frequently enough.
“In marketing, I've seen only one strategy that can't miss and that is to market to your best customers first, your best prospects second and the rest of the world last.” - John Romero.
Here are 10 ways to increase your sales to your existing customers:
1. Give great customer service. Take care of your customers by giving them great customer service. Remember especially the 80/20 rule: that 80% of sales come from 20% of your customers. It may not be exactly this ratio in your company, but the vast majority of your revenues will come from a small minority of your customers. Make sure you differentiate the service to your best customers – to the 20% which gives you 80% of your sales. All customers are valuable - but they are not all equally valuable.
2. Develop a customer database. Make it a priority to develop a customer (and prospect) marketing database, not just an accounts' database. Your customer database will be a great marketing asset to your business and a potential source of additional revenue and profits.
3. Maintain regular, relevant and value-adding contact with customers. Communicate regularly and relevantly with your customers, whether this is by email, direct mail, telephone or face-to-face. This keeps you in your customer’s minds when their needs arise. Email marketing can be an effective tool for how you communicate with customers, but make sure that what you communicate to customers has the right blend of value-adding content and sales messages. Consider setting aside an hour in your diary every fortnight to ‘call’ 10 customers.
4. Test reciprocal marketing. Use the power of your customer database to engage in reciprocal marketing with selected joint-venture partners. Consider one other business that has access to your ideal target customers. Why not ask the MD of that company to send a communication to their customer base endorsing you as a supplier of your specialist services on the basis that you will do likewise for them? Of course, this has to be sincere. If you have just three or four reciprocal arrangements like this, over the next year you could leverage the power of your customer base and gain access to a wide set of new opportunities.
5. Up-sell and cross-sell. Put a systematic method into place for up-selling enhanced products and services to your customers. Example: Technology is advancing. Are your customers aware of these developments and the benefits of upgrading their existing systems? Put a systematic method into place for cross-selling your other products and services to your existing customers. You may be surprised by how many of your customers are not aware of the full breadth of your product and service range.
6. Ask for referrals. Your clients are a wonderful potential source of referrals. If your top 20% of customers recommended you and you brought in one new customer from each of those existing customers, this would have a dramatic impact on your sales. Create a strong incentive for your customers to give you referrals. That could be a financial reward or a gift – whatever is most meaningful to those who recommend you. Communicate this request to those customers through the media they most favour (email, letter, telephone, face-to-face).
7. Ask for customer feedback Feedback. Customer feedback is a gift. It lets you know how your business is doing and what you could do better. Choose your questions carefully, so they inform your actions going forward. Example: “What is currently missing from our range that you would like us to offer?” The answers you receive may surprise you. Good! Those answers represent ways to grow your business and develop your customer relationships.
8. Develop your key accounts. Identify the key accounts that you and your sales team should proactively contact. Agree with a strategy for understanding their priorities and identifying opportunities for additional sales. Make a plan for meeting with those customers face to face, to make the following enquiries:
How can we improve our service to you?
How much of your total spend on this category of purchases do we represent?
What do you need that we can help you with?
What else are you buying that is related to the products and services we provide for you?
What other locations are you operating from?
Who could you refer us to?
9. Make occasional irresistible offers. Often the best approach is a simple, short message – a one-page letter or brief email. Make it an offer that’s only for your customers, tailored as much as possible for each customer uniquely, as a reward for their loyalty.
10. Make your website a magnet. Don’t forget the value of your website to customers as well to prospects. You need fresh, interesting and engaging content that informs, educates, and entices customers to come back.
There are many ways to increase sales to customers. This is part of what we can help you do – at Rathbone Results, we help business leaders deliver more profitable and sustainable growth. If you would like to know more, about how we can support you to increase sales to your customers, give us a call at 020 8798 0175 or email us at info@rathboneresults.com.
Jim Rathbone
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