How to increase revenue without chasing new customers

Novice businessmen often try to attract as many customers as possible in order to increase profits. This is due to a number of problems, including high marketing costs and poor quality service. But the main problem of the extensive development model can be considered its limited possibilities: development sooner or later rests against the ceiling of the lack of resources and market saturation. From this article, you will learn how to increase revenue by working with your existing audience.

Intensive business development model, the methods of which will be described below, allows you to increase revenue and profit with a stable client base. To achieve this goal, you need to solve two problems. First, you should actively interact with existing customers, increase their involvement and loyalty. Secondly, you need to provide existing customers with the greatest possible benefit of interacting with your business. The following describes the methods by which these tasks are solved.

See also: How to solve problems in sales that marketers blame

1. Allow the audience to make important product-related decisions.

Before the advent of the Internet, marketers spent a lot of time and money studying the needs of the audience. They conducted focus groups, questioned and interviewed thousands of consumers, studied the experience of competitors. Obviously, it was not always possible to guess the market mood. Thanks to the Web, you can delegate research to customers. Directly ask customers to tell about their vision of the product, with respect to price, design, service.

How to put it into practice

Use the following recommendations and tools:

  • Conduct a survey on social networks.
  • Swipe a remote focus group using Google+ Hangouts.
  • Organize an open discussion in social networks or on the industry forum.
  • Offer volunteers to test your product for free, share usage experiences and suggest ways to improve.

By attracting customers to make decisions, you increase their involvement and loyalty.

2. Build long-term customer relationships

Sniffing up an expensive product and cutting down more money is an inadmissible luxury for any business. The client to whom you sold the unnecessary options will most likely not return to you. Therefore, you have to spend money on finding and attracting new customers. You can save money and effort by building long-term customer relationships.

Try to provide the consumer with the maximum value at the best price. The optimum is somewhere between the minimum price that the customer is looking for and the price that is needed to generate profit.

How to put it into practice

The following recommendations will help you:

  • Provide customers access to free customer support. Do not be shy, take an example from Amazon support. These guys have no equal in the ability to give pleasure to the client at a distance.
  • Provide the customer with some portion of the product for free. For example, conduct free audits of sites, offer every car buyer a subscription to car wash services, think about selling a product on the freemium model.
  • Always think about customer benefits. Sell ​​him the right product, not the one that is more expensive. Timely solve customer problems. Once again, pay attention to Amazon: this company during the warranty period free of charge changes the damaged readers to new ones. Even if you sat down on the reader and crushed it.

See also: How to use the principles of shortage and urgency on ecommerce sites

Maintaining a long-term relationship, you can not worry about the costs of attracting new customers.

3. Use upselling and cross selling

Upselling and cross-selling are the easiest ways to generate additional income without finding new customers.

Upselling is an increase in the transaction amount by selling a more expensive product. Cross selling is the sale of additional or related products. When you come to the store for vodka, and the seller persuades you to buy whiskey, this is upselling. When you make out a car loan in a bank, and the bank clerk persuades you to immediately issue a CASCO, this is cross selling.

Do not make cross-selling and up-selling in a commonplace vtyuhivanie product. Offer the customer a more expensive product only if he really needs it. Build cross-selling in such a way that the client sees additional features and convenience, and not an attempt to cash in.

How to put it into practice

Use the following guidelines:

  • Offer customers several product categories or pricing plans. Describe the real benefits of products from each price category.
  • Create a product scarecrow "superelitarnoy" category. Push it in with excess options and set an overpriced price. Next to this scarecrow, your premium and elite products will look affordable. This tactic can be called a cheat, but you do not impose anything on anyone, right?
  • Do discounts for wholesale buyers. For example, if you are selling software or online services, encourage consumers to subscribe for a year or two years. This will increase the average amount of the transaction.
  • Help your customers purchase related products from you. For example, if you sell cell phones, it is logical to sell accessories and a headset for cell phones.

Upselling and cross-selling are beneficial to the business if you sell more expensive and related products without imposing.

4. Satisfy the information needs of customers.

Your customers need information at every stage of their travels. By satisfying information needs, you create the conditions for increasing profits, even if you do not sell the product immediately. By providing the client with high-quality expert information, you are moving away from price competition. Do you think this thesis controversial, want evidence? You will find them in the article "How to make $ 87 million through content marketing."

Practical implementation

Try the following methods and tools:

  • Keep a corporate blog. Publish customer-related information related to your industry.
  • Start sending emails to customers with useful information.
  • Create themed communities in the social networks that are popular among your customers.
  • Keep a channel on YouTube.
  • Hold regular educational webinars or video calls with customers.
  • Write an e-book, release white paper.
  • Surprise your audience: publish a printed newspaper or magazine with useful information.

By informing the audience, you keep existing customers and at the same time use one of the cheapest methods to attract new customers. It is still the cheapest.

See also: How to increase prices and not lose customers: 7 tips for business

5. Remember: road spoon for dinner

If you sell tours to the ski resorts of Austria, work hard in December. If you sell sunglasses ... Well, then you understand. Remember the seasonal surge in demand for your product. Remind existing customers of the need to buy a new Panama, change tires, extend the insurance contract.

How to act in practice

Pay attention to the following recommendations:

  • Use CRM systems to monitor customer needs. Remind the consumer that his software subscription or bank deposit agreement expires in a month. Offer to continue cooperation on favorable terms.
  • If your industry has seasonal demand, activate your marketing efforts in advance. Offer existing customers loyalty bonuses.
  • Conduct seasonal sales. This will allow you to reduce the volume of unsold goods.

Timely interaction with existing customers will help you keep sales high.

an old friend is better than two new ones

This popular wisdom is relevant for marketers. To attract new customers is expensive: you have to overcome consumer advertising deafness, fight with competitors, prove to new customers that you are a reliable partner. It is cheaper, faster and more profitable to meet the needs of existing customers. By the way, many methods of working with an existing audience naturally attract the attention of potential new customers. Use it.

See also: Showrooming: Myth or Real Threat to Retail?

Watch the video: How To Improve Your Sales Process And Increase Business (March 2020).


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