Most of your profits should come from one easy strategy: reselling to your present customers. Why? Initially, the best person to sell to is somebody with whom you have already got a current relationship. They know you, they like you, and so they trust you. A buyer who buys from you twice is twice as doubtless to buy from you again.
Another excuse you must focus on current clients is the fact that most other entrepreneurs and companies are endlessly chasing new prospects, placing all their energy, money, and assets into the effort. At finest, they’re spending 80% on attraction, 20% on retention. You possibly can simply get forward of them in the event you’ll simply reverse that ratio. Spend 80% of your time centered on reselling to existing prospects, and 20% on acquiring new customers. You are losing cash for those who don’t do it this way.
Third, it’s a must to understand that even when folks need to do extra enterprise with you, you can’t just watch for them to approach you. You need to be proactive, going after them aggressively. Make them irresistible offers. Invite them to buy new, related services from you. Look for gaps to take advantage of in your market — problems or wants that are not being addressed.
What are your competitors doing proper that you would be doing too? What sorts of services or products can you create? What kind of joint venture relationships can you work out with direct or indirect rivals to sell your existing clients a services or products they’ve developed, and vice versa? These are all good questions to ask you.
You are not in business to lose cash, and promoting to present customers really is one key to most profitability. The customers you’ve got already are absolutely golden. Some companies just do not seem to get this. They’ll make wonderful gives to new clients; however leave their present customers high and dry. My mentor was in a spread retailer once when someone brought in a coupon and the clerk said, “Sorry, that’s for brand new clients only.” The client said, “I’ve been a customer right here for years.” And the clerk mentioned, “Sure ma’am, and we respect that, however this particular offer is for brand spanking new clients only.”
My mentor thought to himself, “How silly is this? You won’t cut her a deal — but someone just coming in off the road for the primary time gets five or ten dollars off?” It simply exhibits you how dumb some businesspeople are. It’s important to deal with your best customers the best. Period. Sure, you need to treat new clients nicely too, however save the extra-special remedy on your current customers. Admittedly, it’s harder to make a sale to a primary-time buyer than it is a repeat customer, which is why a lot of businesses make these killer gives to new customers. However they offend their outdated clients by doing so — and risk shedding them within the process!
One of the explanations why I really like unsolicited mail is you could make good affords to both new and existing clients, and neither group has to know what you are providing the other. For example, if you’re an area business, you’ll be able to run a promotion where you’re mailing to people in your community with a really particular first-time customer offer, and on the similar time you’ll be able to mail your existing clients another great offer. That approach, you care for your present prospects and appeal to new ones to both widen your buyer base or get better your shortfall as existing clients go away the market, move, move away, or otherwise stop spending cash with you.
My point here is that there’s a large measure of income to be made by reselling your present prospects on merchandise, and companies just like what they bought the primary time. It is simpler to resell to your present customers, and generally, it is just not attainable to overdo it with the offers. They will always be hungry for more things related to what they purchased the primary time.
You have a gold mine sitting in your lap. Don’t forget it exists whilst you’re angling for brand spanking new customers. Given the possibility, current prospects will spend more cash with you. Even if they do not, it is most likely since you’re not innovating enough — you’re not growing new products or services, or finding more associated presents you can make to them. It’s your fault, not theirs. Once you settle for that duty and know you’re losing cash if you happen to don’t attempt to resell to your current buyer base, let the pain of that information drive you send.