Who are the best people to sell your product or service to? The people who already know that you exist and have bought from you or fresh, new customers? You may not be surprised to hear that businesses are 60-70% more likely to sell to an existing client. This is compared to 5-20% for new prospects. It’s also more cost-effective to sell a product or idea to someone who has an inkling that it exists.
But how do you increase revenue by marketing to your existing clients or begin to market to customers who have used your service before?
Build a strong relationship with your customers.
The key to any relationship is to build a strong bond and to maintain contact with them. Let’s take a garage as an example. You get a puncture, find a garage that will replace your tyre, pay them money, and drive away. You probably remember the customer service and quality of the coffee in the waiting area. So, when they text you when your MOT is due to let you know that they provide that service, too, you’ll be more likely to use them.
There’s nothing wrong with picking up the phone and checking in with customers and clients. Aside from reminding them that you exist, it also gives you the opportunity to let them know about other services that you offer, find out how they are doing, and maybe get a referral (we’ll come to those later in this article). What’s the worst that could happen? They could say “thanks, but no thanks”, at which point you also get valuable feedback about the service you provide. Even with a negative response, you can still get a benefit, and you’ll stick in their mind when they need your skills in the future.
Encourage clients to give you reviews.
Everyone loves a compliment or a well done, and it’s even better when that compliment is there for all the world to see. A genuine positive review enables potential customers to see the quality of service that you offer and that you do what you say you’ll do.
There’s also nothing wrong with asking a satisfied client to provide a glowing online review or testimonial. As the old saying goes, “If you don’t ask, you don’t get”.
Deliver quality customer service.
We’ve had the conversation above with many clients in the past, and one of the replies is always, “But what about negative reviews?” The first thing to consider is why there would be negative reviews. If you run a business, then you set the expectations of your customers. So, if you’re providing the strong customer service they expect (even when things go wrong) there shouldn’t be any room for one stars.
Do your clients understand your pricing?
This is something that many businesses overlook when they are writing their pricing strategies. Does the client understand what they are getting for their money? While it’s important to ensure that services and products are set at a reasonable price, the value is often overlooked. So, consider what the value added is and make sure that the customer knows it too. Referring back to the garage, aside from following up for other services, maybe they also put the locking wheel nut key in a brightly coloured bag so you can’t lose it, or they vacuum the car before handing it back. This is all value-added and makes a difference for returning customers.
Ask for referrals
There’s nothing like a satisfied customer. In fact, they’re your best sales force. So, ask them to do referrals for you. A few years ago, one of the NAMA team found themselves an amazing new hairdresser. The salon had only recently opened. Their hair looked great, and loads of people asked them who their hairdresser was. It was handy that the hairdresser had handed out some referral cards that came with a discount for the new customer and the existing customer.
We’re not suggesting offering discounts but encouraging your customers to make referrals works along the same lines as asking them to give you positive reviews. It doesn’t do any harm, and if they say “no”, it opens up a dialogue about why they were dissatisfied.
All of these options provide you with an opportunity to open a conversation and then give you the chance to up-sell or cross-sell. As we’ve already said, a retained customer is far more likely to spend more with you and purchase more frequently. Whether you go for a “do you want fries with that?” method of letting them know what else you do, or a “how’s your product going, anything you need to change?” up-sell, just opening a dialogue will undoubtedly improve your revenue streams.
Not Another Marketing Agency is always happy to have a chat with clients, both old and new, and will always refer you to businesses that we know, like, and trust. So, why not get in touch?