Growing a business is all about “more”. More people, more products, more processes, more complexity. And, of course, more revenue.
As we create revenue growth plans we usually focus first on bringing in new clients. While this is a valid strategy it causes us to lose sight of the growth opportunities from our existing customers; our diamonds. These are, after all, the people who love and trust us and write us cheques.
Here are five strategies to increase the revenue from your existing clients. BUT (and this is a big but!) don’t go into this with the idea of “how can I sell more to my existing clients”. Go into it saying “how can I provide additional help to my existing clients”.
Strategy 1 – Make your clients aware of all your products and services
Your customers know about the products and services they are buying from you but do they know what else you have that would help them? If not when they want additional help they will seek out other suppliers even if you could satisfy the need. Some examples of additional help that customers may not be aware of:
- A gym that offers home fitness programs
- Home cleaning service that offers renovations
- A marketing company that builds websites
Strategy 2 – Point of Sale
This is a term coined by the retail industry to describe the goodies they display around the cash register. As customers wait their turn and pay for their purchases they are given time to consider adding something from the Point of Sale rack. Perfect for the retail industry but it can be applied to others. Some examples:
- An ecommerce site can replicate the point of sale concept at checkout time
- Your invoices can offer additional products that enhances the one they are already buying
- When the customer agrees to buy, offer an additional product at a reduced price
Strategy 3 – Provide complementary products or services from other suppliers
Creating your own products and services is lots of fun but it is very time consuming and costly. If you know of another company you trust that has complementary products to yours strike an agreement to add them to your offering. Some examples:
- A coach that offers assessment tools such as DISC or Kolbe to help her clients
- A car dealership that offers rust protection
- An electronics store that offers extended warranty coverage
Strategy 4 – Special deals
This strategy can take many forms. Offer your best customers selected products not available to others. Multiple purchases of the same product; if you buy 3 widgets you can buy a 4th one at half price. Seasonal specials that are only offered to your customers. Some examples:
- Chapters and Amazon have free postage if you spend over $25
- Customer loyalty programs are focused on providing your customers with special opportunities
- If you attend conferences and offer discounts if they buy at the conference offer the same discount to your clients for a limited period
Strategy 5 – Increase prices
“Well this doesn’t “help” my customers” I hear you say and you are right! But it does if it is tied to an improvement in your product. It does if you enhance your service so there is additional value. Some examples:
- For many years we helped our clients develop strategic plans. Not anymore! We now help them develop AND execute strategic plans. Much more valuable than the original service.
- Sometimes you are forced to increase prices simply because the raw materials that make up your products increase in price. If this is the case then explain the reason for the price increase and provide some short term benefits such as:
- Hold the old price for a limited period
- Provide free shipping
- Reducing your costs without increasing your prices has the same effect as price increases. Find a cheaper supplier of your raw materials. Reduce your coaching sessions from 1 hour to 50 minutes. Apply technology to the delivery of your service.
So next time you are creating strategies to increase revenue start first with your diamonds; that is, your existing and past clients.