No matter what business you’re in, the easiest and most predictable source of revenue can be found in your existing client base. Your loyal customers are likely to be repeat buyers, with a much higher average spend than a new customer. And acquiring new customers is expensive- up to ten times the cost of retaining a current one.
So how do we get more sales out of existing customers? From upselling to incentives, there are many ways businesses market additional services, but let’s start with the basics:
Stay in touch.
Does your sales team or staff contact customers by phone, email, or handwritten note to stay in touch throughout the year? Even if they are loyal customers, it’s a good idea to keep your business in front of them. A low-pressure “check-in” with a customer can build rapport, and a loyal relationship may keep that customer from becoming persuaded by discounts and sales pitches from your competitors.
Remind customers of everything you offer.
Never assume that even your most frequent customer is aware of every product or service you offer. As consumers, we are accessing and absorbing information at a much faster pace than in the past. Our smartphones and other electronic devices are tools used to market to consumers constantly, even recognizing our browser history and making recommendations for purchase. It’s important that businesses constantly remind customers of existing and new products and services. Whether from a sales representative or your marketing team, a letter to customers once a year can help keep your solutions on their radar.
A letter template may include the following:
- “Thank you for your business”
- Latest News at {Company Name}
- New Products & Services
- “As always, we still offer these products and services…..”
- “Check us out on social media and refer us to a friend”
Ask for referrals.
As I mentioned in the last bullet above, remind customers to share their positive experiences with a friend or family member. Referred customers are more trusting of your business and are quick to become loyal customers as well. As consumers, we are usually more apt to vocalize a negative experience versus a positive one. And for business owners, it’s important to remember that it takes ten positive word-of-mouth experiences to negate one negative. Loyal customers are usually willing to share their positive experiences; they just need to be asked. Ask your customers to spread the word when they are happy, especially in social media.
These are three simple and quick steps that can help you increase your revenue per customer. For more tips, follow our blog and feel free to share your comments below!
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