Did you know that one of the best – and easiest – ways to increase your revenue and profitability is to sell more to your existing customers? However, many customers only know about the products they have bought from you. So, simply telling your customers about different products in your range can bring in more business without the hard work of chasing a cold lead.
Cross-selling and up-selling is all about relevance. By looking at what your customers have bought before, you can offer them other relevant goods and services that they might be useful. They will see this as good customer care, rather than an intrusive sales pitch, which lets be honest no one enjoys doing!
It’s worth bearing in mind that the chances of success when cross-selling to an existing client are 60-70%, and only 5-20% for new targets (source: Marketing Metrics).
Never underestimate the importance of your existing satisfied customers. It costs less to sell to them than it does to find new business. What’s more, they are loyal, they tell you what you are doing right and wrong, they recommend you to their friends and, compared to new customers, they are less price-sensitive as they (hopefully) understand the value you can bring to them.
Unlike a cold lead, selling to existing customers is quite different to approaching new prospects. You don’t need to establish your reputation, skills or the quality of your products. The customer is already convinced. The fact that you’re telling them about other useful products or services shows that you understand their needs and care about their satisfaction.
Here are 7 steps to help you increase your profit from your existing clients.
- Sell more services
Run surveys to uncover opportunities. By asking your clients what challenges they are facing, what they’d like to have but currently don’t, allows you to respond with a solution or recommendations. This often leads to new work.
- Sell more often
By getting in touch with your clients on a regular basis means you are creating opportunities to sell more products. For example, a printer could sell business cards letter heads etc more often if they kept in touch with their customers and offered more services.
- Sell at a higher price
This is all about knowing your price and been confident. Don’t price your services based on what you think your customer will pay or what your competitors charge. Pricing is an art, and you need to know what you should charge.
- Up sell your offering
As your client’s business continues to grow, they will likely need to make changes, whether it’s within their staffing, systems, marketing, technology and so on to accommodate that growth. As a consultant to their business, you are in a good place to foresee what changes will be needed and can assess to see if you can add value down the line. Set the expectation with your client that you’ll be ready to help them throughout their growth and educate them throughout the whole process. When they are ready to make those changes, you’ll be the one they call.
- Bundle services together
A simple way to increase your profit is to add together several things you provide for an all-in price. This will add value and possibly save your customer a little money. In the meantime, you are selling more services than they would have necessarily initially purchased, creating more revenue for you.
- Create a retainer service
By creating a retainer price for a fixed set of services for a fixed fee, not only means your customer knows what to expect from you but I also means you to establish a regular income over a number of months and years.
- Create fixed price services – don’t charge by the hour
Do you charge by the hour? Because what happens if you only want or are able to work 30 hours a week? Charging by the hour will restrict the amount of money you can earn without going over the hours you want to work. Always create a fixed price. Never charge by the hour.
If you’d like some advice or support to get your business moving in the right direction and increase your profit, then we’d love to hear from you.
Call Emma or Paul on 01902 212937