3 Steps to Boost Your Income Through Existing Customers
One of the biggest mistakes businesses make is ignoring existing clients in favor of gaining new ones. According to statistics from Totango, a large number of companies surveyed spent just 21 percent of their marketing budgets on old customers, even though they make up more than 61 percent of the same businesses’ revenue.
While it’s a good idea for a company to increase its customer base, it’s an even better idea to focus on your already converted clients.
So what do you do? It’s simple. You can implement 3 easy steps that’ll help maximize your revenue from your existing customers while you win over new ones.
Here are the 3 ways that worked well for us:
1. Increase your average transaction size.
One of the easiest ways to increase the value of a transaction is to upsell or cross-sell. Have you noticed when you order something from McDonald’s for example, you’re offered complimentary products to go with your order? By simply asking “Fries with that?” they’ve made more money. And you feel like you got your money’s worth.
Together with your marketing team look at ways you can upsell or cross-sell at every possible opportunity.
2. Personalize your customer service.
Bad customer service is a tried and tested way of losing customers. The philosophy is simple: customers will remember you if you remember them. Offering a personalized service isn’t hard to do. There are CRM systems that you can use capture a customer’s information in one place, which helps you keep comprehensive records of their names, contact details, interests, and their previous interactions with your company.
There is a huge difference between an automated email with DO NOT REPLY in the subject line and one from “Susan” that reads “Hey John, thank you for your purchase.” Remember a loyal customer that feels special is also a lot less sensitive to price increases than a new or irregular one.
3. Surprise and delight your customers.
Everyone loves a surprise or a gift. Depending on the nature of your business or product, sending loyal customers a small gift is one way to keep them coming back for more, and have them recommending you to their friends and family.
A small token of your appreciation goes a long way and it doesn’t have to cost a fortune. Handwritten cards, special discounts or invitations to pre-launches will have customers keeping you top if mind!
Use your existing customers to grow your business. Smart companies use referral incentives to build their businesses by offering existing and potential clients incentives for sharing their services or products.
Ignoring your established client base for the sake of attracting new clients will eat into your marketing spend and use resources you might not necessarily have to. Instead, use your existing customer base to attract more clients, and let them build your business for you!
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