We’re going to let you in on a little secret: one of the most effective ways to increase your revenue is to generate more business from your existing customers. You probably thought increasing your customer base was the best way to increase your revenue, right? While it’s true that increasing your customer base is vital for the present and future success of your business, one of the most basic business mistakes people make is focusing more on new customers than the ones you already have.
Think about it like this: while you’re focusing on nurturing new leads and trying to gain new customers, your current ones are going to feel like you no longer care about them, which essentially encourages them to look elsewhere. And, it’s actually more expensive to secure new customers than nurture existing ones. Furthermore, in a study by Marketing Metrics, researchers found the likelihood of selling to an existing customer is 60-70%. Those are some pretty good odds. And the probability of selling to a new client? Only 5-20%.
According to Hubspot’s State of Inbound 2017 business report, for 45% of respondents, their top marketing priorities for this year is to increase revenue from existing customers. In this article, we are going to provide you with some simple tips on how to increase your revenue from existing customers.
If you know even the smallest thing about marketing, you’ll know that there is no such thing as the standard customer experience. It’s all about the personal – knowing what each client wants and giving it to them. Personalisation is important when acquiring new customers, but it’s even more important with existing customers. When your existing customer can see that you know and understand their personal needs, it instils the confidence the customer needs to continue using your services.
Getting personal doesn’t only refer to the online experience or the marketing message, but also how you reach your customers. When acquiring new customers, it’s important you use a lot of different channels because individuals have different ways they like to be reached. With existing customers, you should know and remember how they like to be communicated with and ensure every time you reach out to them, it’s on the channel they prefer, whether that be email, social media or even a phone call. According to research, 80% of your future revenue will come from just 20% of your existing clients. If you can make your existing customers feel like they are important to you, you will keep them coming back for more.
No matter what kind of business you run – whether it’s a service or a physical product – why not offer your existing clients something ‘on the house’ every once in a while? For example, these days if you’re selling a physical product, free shipping has become the norm. And if they have to return a product, most customers expect to be able to send returns for free as well. It’s a show of good faith and that you care about the customer experience. It also means customers both existing and prospective are going to trust you more.
If you offer a service, why not offer your existing clients something new, you’re considering, for free? They’ll be grateful that you trusted them with their opinion and feedback, which in turn will strengthen their loyalty to your company. Good business relationships are built on trust, so while these may sound like big expenses for your business, they are worthwhile in the long run.
It’s not enough these days to do the bare minimum. Customers expect you to go above and beyond and stand out in the crowd. In truth, the success of your business depends on it. So how can you go above and beyond? Keep up to date with the latest market research and continue to understand your buyer personas. Once you know who your customers are and what they want, then you need to start thinking about how you can go above and beyond what they might be expecting from you.
For example, if you own a graphic design business, smash those deadlines! If the client needs something back by the end of the week, try to get it to them by mid-week. The fact that you offer such a quick turnaround (at a high standard nonetheless) will keep your customer coming back for more. Or if you offer physical products, make delivery as fast as possible. If you offer something few others can, your existing customers are likely to continue using your business.
Don’t be afraid of working the upsell with existing customers. They already have purchased from you once and have liked what you do, so don’t be afraid to show them your worth and convince them to upgrade. Whether this is upgrading their subscription or opting for a more expensive version of a product, if you never ask, you’ll never know what they’re willing to spend.