As a successful entrepreneur, you are naturally focused on bringing in new customers. What many entrepreneurs forget, however, is that the easiest and most predictable source of new revenue can be found right under their noses: their loyal customers who are familiar with the organization. That's how you get more revenue from existing customers:
A continuous focus on bringing in new customers is an expensive endeavor (five to 10 times the cost of retaining current customers). Moreover, a returning customer spends an average of 67 percent more than a new customer.
In short, spend time and budget on getting new customers, but also make sure your sales and marketing staff have strategies in place to get more revenue from existing customers.
And implement this consistently so that it is an ongoing process.
In this article, I will focus on #2: increasing lifetime value.
Let's start right away.
Be aware that your current customers may have two "roles": that of customer and that of lead.
But how do you know when a current customer is also a lead for another(er) product or service?
Simple: you can tell this by his behavior on your website - or behavior on your emails.
Understanding your customers' behavior on your website is a great opportunity to send the right email at the right time
One of our customers found that he was missing a lot of sales because he didn't know when his customers needed additional products (or when his customers' products needed replacing).
To address this, he set up an email notification with our Marketing Automation Software so that he is always aware when an existing customer returns to his website.
Of course, the software allows him to see exactly what that visitor has done. Example:
Another client of ours sells software with multiple applications. A lot of his customers purchase 1 application, so there is a lot of up- and cross-selling opportunity for this entrepreneur.
How does he ensure that a customer purchases multiple applications?
As follows: once an existing customer visits a particular application page on their website, they receive emails with valuable information about this application.
These emails tell the added value of the application through customer cases.
Find out more about marketing automation
Never blindly assume that all of your current customers know exactly how your organization can help them.
Customers often come in for 1 solution.
Then they resume their busy lives.
It would be a shame if they are not made aware of all the other products you can help them with. Therefore, make sure your customers receive regular reminders of the valuable products/services they are not yet taking.
Example Twitter - makes their customer aware of direct messages via email
Example Mailchimp - which uses email to make their customers aware of their email marketing ideas page
Don't assume that your customers know exactly what you have to offer. Be sure to address this regularly in your email conversations.
Do you have a recurring product (e.g., seasonal)?
Make sure you set up an automatic reminder - this way you have 100% certainty that the customer receives the right (personalized) follow-up. This way, you can possibly prevent this customer from scrutinizing your competitor's products.
You can schedule these e-mail reminders precisely. With Marketing Automation software, you can even schedule automatic emails up to 12 months later.
Ideal for organizations that rely on a recurring revenue stream.
Example: e-mail from catering company runderkamp.nl - 10 months after an annual company party:
Surveys (questionnaires) are a super powerful way to look inside your customer's head.
What are they missing in your product/service? What business issues do they need more help with? What more do they expect from you?
It's really as simple as sending an email. You can use free online software for this like surveymonkey.com.
It is important to keep surveys short - so think carefully about what insights you want from the customer.
Here you will find a valuable e-book that can get you started in developing a survey: link
Example:
Webinars are on the rise. It's a powerful way to help your customers move forward with valuable knowledge.
Once you link event or webinar content to a product, the sale is a lot closer.
Pick an issue that your product solves that you know a lot of your customers are facing. Try addressing this issue via a webinar or during a workshop/event - and during the event or webinar, explain how your product can support them in this issue.
Of course, it is not desirable for it to be a "sales" event - the basis is to share valuable tips and knowledge.
You can easily conduct a webinar with Gotowebinar.com.
Create a Powerpoint/Prezi/Keynote presentation of the topic and walk through this presentation with your listeners.
Would you rather perform it live? Then also encourage your clients to invite their contacts to the event. This way you can generate warm leads very simply.
1. Use your current customers' website behavior as a trigger
2. Educate your customers (and wake them up) about your offerings
3. Use automatic reminders for repeat purchases
4. Send surveys for targeted upselling
5. Organize events + webinars linked to your products