Your customers can often be your biggest asset in a business. Because if no-one is buying then – do you even have one? Here we discuss a few tips for increasing sales to existing customers and thinking about new ones.
Sell more to existing customers
It is much cheaper to sell more to your existing customer base than to get out and find new customers. McDonalds don’t ask if you “want fries with that?” because you’re looking hungry. They do it to sell more.
Tip: Ask your customers what else they want.
- Fixing their loo? Is there anything else I can do while I’m here?
- Buying a sandwich? Would you like a cold drink with that?
- Selling graphic design? Do you need any other web pages fixing/brochures done?
You get the picture.
Make sure you and your team have the right question ready and make sure you can supply the added service/product.
Get new customers
This is a huge topic and we could write pages here but let’s start with a simple tip:
Tip: Ask happy existing customers to refer you to their contacts.
This is word of mouth prompted and organised by you. There are different ways of doing this and, as Kiwis, we can be uncomfortable with asking for a direct referral, so brace yourself. You can:
- You can ask in writing on the bottom of your emails and on your website.
- You can ask when you’re with them or on the phone, “Hey, if you’re happy with the service, would you mind referring us to your friends?”
- You can ask them officially in a direct mail and incentivise them with a gift or reward (take care here as you can de-value the referral by giving people money for it).
People like being asked for advice and helping friends to find the perfect supplier – it’s not an imposition.
Increase your average spend
Tip: Put your prices up
This one requires a bit more work to execute well – but is a very simple step to increase sales.
Remember that if you simply put your prices up without a reason and research, you could lose sales so go through the steps carefully.
- Look at your key product/service prices.
- Compare your prices to your competition.
- Consider your customers and where you want to be in their minds (cheap and cheerful, pricey and good, mid range, etc).
- Pricing is part of your marketing so you don’t want to price low with a high quality product or vice versa.
- Consider the likelihood of losing clients at a higher price point and whether this will impact negatively on your profit. You could lose a small number of customers but have built a better platform for your future.
- Consider what the wider market and economy is doing – if the economy is tanking, don’t go crazy with price increases.
After this research and thought, be brave. You’ll know where your prices should be. A 5% increase goes straight to your bottom line.
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