Want a boost to sales this quarter? Don´t overlook your existing or past customers. They are the cheapest and easiest customers to sell too.
Finding new customers is 6 times more expensive than selling to existing or past customers. Why is that? Well, your existing customers already know and trust you, have brought from you before, and understand the ethos of the company. You also know them, what they like and how to reach them. This is valuable information you should capitalise on.
So we are recommending to our clients to implement an existing customer promotion in their 90 day goals this month.
I don´t know if you have been to FNAC recently but they are using this existing-customer focus to maximum benefit with their money back membership rewards program. With discounts and money rebates you are incentivized to return regularly to spend and collect your rewards. A rewards program is just one of the ways to boost backend sales.
So here are some important things to consider in preparing the promotion.
1) What is the offer?
What can you give your existing customers that they would appreciate and buy? Use brainstorming sessions and customer research (remember your customers will have the answer) to determine this. Types of offers can include:
i) A complimentary product/service to your existing core product/service - i.e a new massage technique in additional to the manicures and pedicures you offer. A new type of city tour if you are in tourism, a how-to-care for plants educational evening if you are a florist.
ii) Adding core-product extensions, follow-ups or check-ups - i.e. a new discounted head-shot from a photographer after 1 year, updated SEO trainings, long-term servicing contracts on sale of a boiler/car, a one-day refresher seminar.
iii) Complimentary services from a strategic partner that offer your clients added value and add a commission revenue stream to your business - i.e. A sport shop offer’s discounted driving range practice to its customers that purchase golfing equipment. A Wedding Dressmaker gives their clients a wedding shower cake from a local cake designer.
2) Research the best way to communicate your offering with your existing clients
How is the best way to reach your existing clients in order that you get the best response to your promotion? Note, this is not always the easiest solution - for example, sending out a mass email with a promotion attached is not always a very effective way to get a positive response from your existing customers.
3) Make sure you have the resources.
This is a compliment to your current offering and business strategy. You need to be able to cover the additional work-load and marketing as needed. You don´t want to leave yourself short so your core business suffers or that you don´t implement your strategy at 100% of your abilities, or it won´t be as successful.
4) Find your existing customer details.
Hopefully this is readily available; otherwise this may take a bit of time. It is important that you don´t continue loosing ways to more revenue by not keeping the contact details of your existing customers organised. If you don´t have any contact details, think of a way to start collecting them today. Satisfied clients are your best marketers so you want to stay in touch,
5) Plan and implement promotion. Then test and measure.
Make sure you measure the results of the promotion and make any recommendations for improvements at the end of it.
6) Put in the corporate calendar other dates when you will do the next back-end boost to sales.
Make it a regular occurrence. After all that brainstorming I bet you came up with more than just one idea, and build off what you learn from this promotion to make it even better.
If you do not feel that you would be capable of doing an existing-customer promotion then you need to address the reasons why. It is an important part of growing a successful company and we need to take away the personal, operational or customer-service related issues that may be holding you back from these type of promotions. One thing I do know, it isn´t normally as bad as originally feared.
I hope this is inspires you into action. If you need any help on these type of promotions feel free to contact us for additional help.
