As business owners, we all are looking for simple ways to increase the profits within our business.
The common approach is to invest time and money in to marketing to attract new customers and make more sales.
However, what is often overlooked, is how to generate additional sales revenue from existing customers.
Afterall, an existing customer made a decision to purchase from you once, and if they were happy with the product and service it is likely they’ll buy from you again, or even better, recommend you to a friend.
How can you increase sales with existing customers?
- Consider which other products or services you offer that you can suggest to your existing customers
A cleaning business I worked with were looking for ways to increase their revenues. We identified that many clients on regular cleans would likely be interested in one-off window or carpet cleans. Each existing client was contacted to offer this service, resulting in additional revenue being generated for the business, without a vast outlay in marketing campaigns.
- Reward your customers for doing business with you. After an initial sale, contact your customers with a discount voucher, or gift if they buy from you again within a certain time frame. Encourage them to refer a friend, by providing a free gift or reward when they do.
When introducing new products or services, it may be worthwhile offering it to your existing clientele first. This shows that you value their patronage, and also enables you the opportunity to seek feedback to make changes to the product or service (if possible) before targeting a broader market.
- We are all familiar with the notion of adding on products which complement a purchase. However, something as simple as selling a larger quantity of a product will generate higher revenues and increase profits.
For example, a coffee shop selling a large coffee by default rather than asking the customer which size they would like could increase revenues by as much as 10% per sale.
Looking for other ways to tap in to hidden profits?
Consider these options:
- Review your expenses line by line on the profit and loss and identify which items you are incurring unnecessarily. You may be paying for a regular subscription which you are not using.
- Compare suppliers to ensure you are getting the best value for money. It is amazing how quickly mobile phone plans are upgraded. You may be paying an excessive amount for a small amount of service.
- Increase your prices. A minor increase of 5 or 10% will unlikely go unnoticed, yet be added straight to the bottom line.
If you’re stuck for ideas as to how to tap in to that hidden profit potential, reach out to your brainstrust – your employees, accountant or business advisor will be sure to help you identify those untapped profits.