As a successful entrepreneur you are obviously focused on bringing in new customers. Many entrepreneurs forget that the most easiest and most predictable source of new income is lying right in front of them: their loyal customers who are familiar with the organization. This is how you generate a higher revenue from current customers:
A continuous focus on bringing in new customers is an expensive process (five to ten times the costs of retaining current customers). In addition, a returning customer spends an average of 67% more than a new customer.
In short: spend time and budget on bringing in new customers, but also make sure that your sales- and marketing employees have strategies to get more revenue out of your existing customers.
How do you generate a higher revenue from current customers?
- To extend the ‘lifetime duration’. Make sure that your customer is satisfied and loyal, that he is taking your product for a longer time.
- To increase the ‘lifetime value’. This makes sure that the value of the customer increases – the customer spends more.
- Referrals. Make sure that you have a system for this, so your sales- and marketing employees can get a continuous customer flow. So they are not depending on the pro activity of your current customers.
In this article, I will focus on the #2: increasing the lifetime value.
Let’s start immediately.
STRATEGY #1: USE THE WEBSITE BEHAVIOUR OF YOUR CURRENT CUSTOMERS AS A TRIGGER
Be aware of the fact that your customers can have two ‘roles’: the customer and the lead.
But how do you know when your current customer also is a lead for other products or services?
That’s easy: you can see this from his behaviour on your website – or the behaviour on your emails.
Having insight into the behaviour of your customer on your website is a great opportunity to sent the right email at the right time.
One of our customers felt that he was missing a lot of revenue because he didn’t know when his customers needed extra products (or when the products needed to be replaced).
To deal with this, he set up an email notification with our Marketing Automation Software. Now he is always informed when an existing customer returns to his website.
With the software he also can exactly see what the visitor has done at the website. Example:
Another customer of us, sells software with multiple applications. A lot of his customers are only taking 1 application, so there are a lot of opportunities for up- and cross selling.
How is he going to make sure that a customer purchases multiple applications?
This is how: as soon as a current customer visits a certain application page on the website, the visitor receives emails with valuable information about this application. The added value, based on customer cases, of the application is told in these emails.
Are you wondering how you can use Marketing Automation for your organization? You can request a demo of our software.
STRATEGY #2: EDUCATE YOUR CUSTOMERS (AND WAKE THEM UP)
Never assume that all your current customers know exactly how your organization can help them.
Customers often come in for one solution. After that, they continue with their busy existence.
It would be a shame if they are not aware of all the other products you can help them with. Make sure that your customers receive regular reminders with the valuable products or services that they don’t purchase yet.
Example twitter – who makes their customers aware of direct messages by email
Example MailChimp – who makes their customers aware of their E-mail Marketing Ideas by email
Don’t just assume that your customers know exactly what you have to offer. Make sure that this is regularly reported in your email conversation.
STRATEGY #3: USE AUTOMATIC REMINDERS
Do you have a product that returns regularly (eg seasonal)?
Make sure that you set up an automatic reminder – this way you have 100% guarantee that the customer receives the correct (personal) follow-up. You can possibly prevent this customer to take a closer look at the products of your competitors.
You can plan this email reminders. With Marketing Automation software, you can even schedule automatic emails up to 12 months later.
This is ideal for organizations who depend on a regularly returning revenue stream.
Example: email of catering organization runderkamp.nl – 10 months after an annual company party:
STRATEGY #4: SURVEYS, SURVEYS, SURVEYS
Surveys are a super powerful way to look into your clients head.
What are they missing at your products or services? Which business issues do they need more help with? What do they expect more from you?
It is really as simple as sending an email.There are free online softwares that you can use as surveymonkey.com.
It is important to keep the surveys short – think carefully about what insights you want and what you want to know from the customers.
STRATEGY #5: EVENTS + WEBINARS
Webinars are upcoming. It is a powerful way to help your clients with valuable knowledge.
As soon as you link the content of an event or a webinar to a product, the sale is a lot closer.
Choose an issue that solves your product, which you know that a lot of your customers are encounting. Try to deal with the issue by a webinar or during a workshop / event – and during the event or webinar you can explain how your product can help them solve the issue.
Of course it is not desirable that it becomes a sales event – the base of the event lies in sharing valuable tips and knowledge.
You can easily run a webinar with Gotowebinar.com.
Make a Powerpoint, Prezi or Keynote presentation of the topic and go through this presentation with your listeners.
Would you rather run it live? Stimulate your customers to invite their relations to the event. This way you can easily generate hot leads.
THE 5 STRATEGIES
- Use the website behaviour of your current customers as a trigger
- Educate your customers (and wake them up) about your offer
- Use automatic reminders for repeat purchases
- Send surveys for targeted upselling
- Organize events or webinars linked to your products.
Do you want to know how you can use our Marketing Automation Software to get a higher revenue from current customers?
Send us a request for a free demo, in which one of our consultants will discuss the most important parts of Marketing Automation software with you.