How To Sell More To Your Existing Customers And Grow Your BusinessSteve C
Even though you should always be on the lookout for new customers and new
markets to pursue, it’s important to not neglect the customers that got you to
where you are today. According to the Small Business Administration, it’s much
easier drum up additional business from previous customers than it is to find
new customers. The SBA even goes as far as to say that it’s 65% easier to
convert a sale from someone you sold to in the past. I have no clue how they
came up with this statistic, but what this implies is that your marketing
dollars and marketing focus is better spent appealing to your existing customer
base. Implement A Frequent Buyer ProgramOne of this easiest ways to keep a customer coming back is to reward them for
making a purchase. Give away something for free after their 10th purchase and
the customer will tend to stay loyal to your store. Encourage Customers To Try New ThingsThe customer has already purchased from you and hopefully trusts that you
carry only quality products. You must now try to encourage them to try
purchasing other items from you that they might have missed the first time
around. Go through your best customers and compile a list of everything they
have purchased in the past. Then, come up with a few additional items that you
think they might be interested in and send them a little email notifying them of
these items. Give Out Free Samples Of New ProductsIf they are large enough customers, you might even want to give them a sample for free to see if they like it. We tend to do this with our wedding planning and catering clientele. When we get a new shipment of table or wedding linens, we immediately notify our top consumers. In many cases, we’ll go ahead and send them a sample without even asking. This tactic has largely been hit or miss, but when it has hit, the orders have been extremely profitable. Give Out DiscountsShow how much you value your customer by providing them with a discount on their next purchase. Offering a discount also has the unusual effect of causing the customer to purchase higher priced items. Psychologically, your customer is already prepared to spend a certain amount on a given shopping trip. By offering a discount, they will tend to pick the higher priced items because of the extra buying power. In some cases, the customer may also purchase more than they were planning to in order to take advantage of a one time deal. Give Out RebatesI personally hate rebates, but in the interests of completeness I’ll discuss
them here. The main premise of offering a rebate is that a customer can redeem a
cash back reward by sending in a proof of purchase along with a rebate form.
After the rebate documentation has been received, a rebate check is then sent
back to the consumer. Sometimes this process can take weeks or even months. As a
business, you can float this money and earn extra interest until the cash reward
is redeemed. What Works The Best?In our experience, discount coupons and emails to existing customers have been the most effective catalysts for our online store. We’ve also had some luck giving out free samples to our service oriented clientele. If I had to select between the 3 methods, I would choose contacting existing customers directly to suggest new items for sale. In many cases, you can automate the process and create a simple algorithm to automatically select the products to suggest. Discount coupons work well too, but you may get into a pattern where a consumer won’t make any purchases at all unless they have a coupon.
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