Repeat vs new business
Mar 25 2009
The low boredom threshold of entrepreneurs means they are often like a cat on a hot tin roof, hopping from one project to the next.
Launching a money-spinning idea or chasing new sales is all well and good, but mining your existing customer base and getting repeat business should always be a priority. Go for the low-hanging fruit – it's less expensive and time consuming than trying to establish fresh sales leads.
Consider the following:
• When a purchase is made, try to up-sell by offering sensible discounts for multiple purchases
• Put forward special offers and incentives
• Consider a discount or loyalty bonus for long-term customers (without damaging your bottom line too much)
• Keep an eye on what the competition is doing so you're never left behind.
While not appropriate for every business, try to bring in some kind of contractual agreement. The recurring revenue will strengthen your business no end.
• For new sales, you need to do effective marketing:
• Break down your customer base and focus accordingly
• Establish your unique selling point
• Offer a guarantee
• Arrange references and testimonials for your company
• Send out emails and newsletters
Train your sales team (don't underestimate the damage that can be done to your brand by salespeople who don't understand your products and/or services)
A guarantee on what you provide can also set you apart from the competition by demonstrating real confidence in what you do.
Offering incentives and launching marketing campaigns are all well and good. But, the rule is to get in contact with people and find out what they want directly – never second guess your market.
Comment by Tim Kimber
Thursday 9th April 2009Very wise words! Engaging more closely with your customers is more important now than ever. We are all being forced to package our goods up into a value proposition, so its key to communicate and interact with the market and potential as well as existing customers. Many people shy away from investing in marketing in troubled times – in fact this is a time when you should be shouting more about your company than ever before, to ensure you are heard above the competition and reach your customers. Tim Kimber, Office Live. www.officeliveguy.co.uk
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Comment by Richard Ford
Friday 24th April 2009Wise words indeed. Businesses can not only evaluate their own service to see where they can make improvements, but can also covertly assess their competitors by utilising a new mystery shopping service for small retailers known as www.MysteryShopMyBusiness.com
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Comment by steve yeardley
Monday 11th May 2009Very good article. it's getting harder to get new business, but by doing a good job for existing, you get a core that will improve over time http://paywhatyoufeel.wordpress.com/
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