Increase sales to existing customers
Customer retention and our current clients are not always the first things we think about when looking to grow our sales. We tend to forget about our existing customers, which can be a very dangerous strategy indeed, as we can lose sight of their needs which can send our business into an ever decreasing circle into a hole of failure.
Yes, of course, gaining customers and/or market share is the goal of every marketing campaign, whether using traditional or digital methods, that your business invests in but never forget “client retention” as this is a key initial building block for any successful business.
Most businesses make a simple mistake when looking for growth and can forget to think about what extra value we can promote to existing customers.
There are three key reasons why client retention is vital:
1. If you gain a customer through your marketing efforts but lose one you already had because you weren’t paying enough attention to her, you end up with the same number of customers—but lower margins–because it costs far more to gain a new customer than to keep an existing one.
So, staying even—by adding one customer to offset every one who goes away—is actually causing you to lose ground (in the form of decreased profits that come about through increased marketing costs). That is no way to run a business.
2. What is your market share percentage currently? If your sector is in growth and even if more competitors enter your market, then just maintaining your current market share will provide a bigger £ sales and profit piece. So not losing customers is essential to this equation.
3. It is far easier to sell products and services to existing customers than to someone you don’t have a relationship with. If you have a good relationship that is based on trust and delivery, providing what the customer wants, then the upsell should be easier.
Always remember, treat your existing customers with the best possible customer care you can give whilst keep focusing on new trends, keeping your customers informed of them.
Remember to continually ask for feedback from your existing customers. Once you have sold all you can to your existing customers, you can start reaching out to gain more.Top Ten Tips for retaining and upselling to your existing customers”
1. Ask your existing customers for feedback – To understand your customers more, to understand how their needs and wants are changing, to ask them what they want, to ask them what they would like changed, to listen to them and show them how interested you are in them and how much you value them.
2. Think lifetime value, not transactional value– Just think about where you do most of your general food shopping each week? How much do you think you are worth to that company over a lifetime? …..it will be an awful lot of money…if they lose you, they lose hundreds of thousands of £’s, and will probably lose the loyalty of your family members and next generation…..”client retention” is key!
3. Offer complementary products or services – We see this all the time…online selling, will tell you what other customers bought when they bought the item or service you are interested in. Impulse selling can make or break a companies profits. We see excellent examples of this with retailers. Large department discount stores like TK Max/Primark are a glowing example of impulse buying at the point of closing the sale. At the tills you will see rows of guided barriers with tempting goodies usually under £5, that we did not intend to buy in the first place!
4. Keep in touch – Whether it is a monthly useful online newsletter, a Christmas card or Happy New Year message it is so important for your customers to know that you are thinking of them.
5. Help your customers sell more to their customers – Giving top tips and thought-provoking advise will be appreciated if given at the right timing and with the right message. The more successful your customers are the more likely they will be a lifetime customer.
6. Offer value and discounts for Loyalty” – Reward your customers and always think of £margin, not %margin…the numbers will add up if you do the calculations correctly.
7. Remind customers of everything you offer – We often forget to communicate clearly what our businesses offer. We often know our business so well that we forget to be crystal clear about the features and benefits of our products or services. Make sure you engage with existing clients to ensure that they know about new product developments and introductions. Client retention does not have to mean selling the same “old product list” to them time and again!
8. Loyalty rewards – How much time or money do you spend on gaining new customers? If your colleagues, friends, family brought you a customer already to sign up, why not reward them to show how much that is worth to you.
9. Give customers a say in what you sell – Use social media to ask your customers what they like before you buy or before you decide what service particulars you are offering. Use images and videos to engage them and ask questions.
10. Focus on providing your customers with outstanding value – Up-Selling is NOT about trying to fool your customers, it is about trying to get them to think of the bigger picture and saving them time and money in the long run. Remember, it is all about making your customers happy and feeling valued, which in turn will reap rewards for your business.