So you’re reading this blog post because you want to get more customers and increase sales. I get it. We all do. But what if I told you there is a huge opportunity sitting right under your nose that’s easier to convert to sales and is cheaper than hunting for new customers?
Well, there is – your existing customers. I’m astonished at how few businesses are maximising their customer relationships to increase sales. Instead, the focus is always on how to get more customers. But there are some compelling reasons why you need to focus your energy on increasing loyalty and sales from existing customers right now.
- You’ve already spent the money to get more customers. So it makes sense to make the most of the investment you’ve already made.
- It costs about 5 times more to get more customers rather than keep existing ones*.
- An existing customer is 50% more likely to purchase a new product from you*.
- Existing customers on average spend 31% more than new customers*.
- To get more customers you have to use more expensive marketing channels, whilst you can use highly cost effective channels like email to reach your existing customers.
- The more times a customer shops with you, the more loyal they are likely to be.
- Existing customers are more likely to recommend you to others – this is free advertising!
OK, so I hope I’ve convinced you that you need to tap into your existing customer base. Now what? Read on for the action you can take right now.
FIVE EASY WAYS TO GET MORE SALES FROM EXISTING CUSTOMERS
1 – USE CUSTOMER DATA TO CREATE RELEVANT OFFERS
As a minimum you already know what your customers have purchased and when, so you can use this as a starting point to deliver highly targeted sales offers. Just make sure you have collected the right permissions to market to your customers. Not sure? Read my blog post on marketing consent.
2 – USE REGULAR EMAIL COMMUNICATIONS TO ENGAGE YOUR CUSTOMERS
By regularly staying in contact with customers you build an ongoing relationship, and you stay top-of-mind. Sometimes customers just need a little reminder you’re there to stimulate sales. Email marketing is a perfect channel. It’s cheap, effective and you can do it yourself with the great tools out there like Mail Chimp.
3 – EDUCATE YOUR CUSTOMERS ABOUT YOUR PRODUCTS AND SERVICES
Don’t assume your existing customers know all of the great products and services you offer. And if you’ve launched something new, your existing customers should be your first port of call. Always.
4 – MAKE YOUR CUSTOMERS FEEL IMPORTANT
We all want to feel valued, and you’ll be surprised how far a little effort goes. A simple thank you email, a special offer just for existing customers, or advance notice of a new product launching are really powerful benefits. These gestures cost you very little but build up significant goodwill.
5 – ASK FOR REFERRALS
You can develop a structured referral programme giving your customers a tangible benefit for referring new customers to you. Or you can keep it real simple by asking …“know anyone else who’d love this? Please share”. You could pop this at the bottom of your regular emails, or use a social media post that encourages fans to tag others who’d benefit. Read my blog post on how to craft the perfect social media post.
People are more likely to buy from those they trust – so don’t underestimate the power of your existing customers.
So that’s just five easily actionable tactics you can take right now to grow sales without blowing your marketing budget. I always recommend that established businesses start with their existing customers first. This is the best way to increase sales quickly and cheaply. Then focus your effort and budget to get more customers. Happy selling!