Acquiring new customers is expensive and time-consuming. In fact, research shows that attracting new customers is 5X more expensive than keeping your existing customers. Providing customer satisfaction isn’t a guarantee either, as between 60 and 80% of satisfied customers never make another purchase, according to Forbes. For more insights on how to increase revenue from existing customers, scroll down to the infographic.
For a simpler way to increase sales, you can tap into your existing customer base. Don’t let customer relationships fizzle out after the first sale. Instead, learn how to increase revenue from existing customers by:
- Getting increased revenue from existing customers
- Using marketing automation to build long-term relationships with customers
- Address ongoing customer needs
- Develop new products aimed at your current customers
- Upsell and cross-sell as part of your normal marketing strategy rather than focusing only on new customer acquisition
- Create a loyalty program
- Train a customer-centric team
How to increase revenue from existing customers
You increase revenue from existing customers by fostering relationships with the individuals and businesses that buy from you. To market to your existing customer base, try these seven tips.
1. Research your market
Market research and analytics open doors to new opportunities within your existing clientele. By taking a deeper look into the market you serve, you can hone in on who your customers are and what they want.
Gather data by conducting a market analysis. Get feedback through surveys, focus groups, and interviews.Listen to what customers say across social platforms. Read trade articles and industry-related publications. Also, look at data from the Bureau of Labor Statistics and the Economics & Statistics Administration.
Studying your market helps you dissect your existing customers’ thought processes. You can base your marketing strategy on how customers originally chose to buy from your company. The data also helps you fill holes in the current market.
2. Don’t disappear
Consumers have a lot of options, so it’s great when they choose your offerings over competitors’. But once you complete the initial sale, it’s important to stay in contact. With existing customers, it makes sense to follow up.
Marketing automation, like Salesforce or Marketo and the others above, helps manage customer relationships over time by sending targeted messages based on prior interactions with the customers. So, when you release a new product or update an existing one similar to one already purchased by the customer. a custom message provides this information.
Collect customer contact information at the point of sale. Keep customers in the loop about things happening at your business. When you have company-related news, let your existing customer base know through emails, newsletters, or phone calls.
3. Address customer needs
As a small business owner, you have an advantage over big businesses. By serving a smaller number of customers, you can offer a personal experience. The individual nature of your interactions helps you find out what each customer needs.
What problems can your business solve for existing customers? The answer can come from many different sources, starting with simply asking the customer. You already gained their trust, so the customer is more likely to open up about their needs. Also, look at past purchases and customer demographics.
Offer a personal touch when marketing to existing customers. Use the customer’s name in emails and phone calls. Provide one-on-one support when a customer needs help. And, send thank you notes, reminders, and birthday messages.
4. Update your offerings
As your business grows, your offerings change. Experience teaches you which goods and services sell and which cost you. Turn to existing customers when it comes to deciding what offerings to get rid of.
The items your customer base ignore are probably costing you money in more ways than one. Low sales items also clutter your business. By stripping away items that don’t sell, customers can focus on the products and services they want. This makes it easier for customers to make purchasing decisions and see the value in your offerings.
5. Upsell and cross-sell
Existing customers offer great opportunities for upsells and cross-sells. You’ve already gone over the biggest hurdle, which is the initial buy. You’ve established trust and started a relationship, and the customer has formed an opinion about your business. Now, it’s time to ask, “What else can I do for you?”
An upsell happens when you convince a customer to buy more than they originally planned. Here’s an example of an upsell:
You own a pizza shop and a customer orders a medium pizza every Friday. You suggest they buy a large pizza and, because the customer frequents your business, they agree to the bigger order.
Cross-selling is similar to an upsell. Instead of the same kind of item with a higher value, the customer buys a different product or service. Let’s say you own a salon. You might cross-sell a color service to a customer who usually gets a haircut.
Upsells and cross-sells are extremely valuable when marketing to existing customers. Usually, the more a customer spends at a business, the more often they return.
6. Create a loyalty program
Selling to existing customers becomes easier when customers feel appreciated. By offering a reward for choosing your business, you gain more loyal customers.
A loyalty program rewards customers for buying from your business. Set up a loyalty program for your business to encourage customers to keep coming back. To create the program, you could distribute cards or use an app to track customer purchases and rewards.
Usually, a customer receives points each time they buy something at your business. Once the customer reaches a certain number of points, they receive a reward. The reward could be anything you choose, like a discount or free item. The loyalty program pulls customers back to your company, increasing your bottom line in business.
7. Train a service-centric team
While great customer service alone isn’t sufficient to increase revenue from existing customers, providing poor customer service is a great way to lose customers — forever.
To successfully learn how to increase revenue with existing customers, you need to get everyone at your business on board. Let employees know the importance of establishing long-term relationships with customers.
Create a service-focused environment by encouraging employees to take care of existing customers. Train new hires to help customers, and write a policy for handling complaints. When your workforce focuses on great service, you end up selling more to existing customers.
Amanda Cameron is a content writer for Patriot Software, LLC, a provider of SaaS accounting and payroll services. At Patriot, she explains difficult accounting and payroll topics for small business owners.
Infographic by- Invesp