How to Create New Revenue from Existing Customers
As a business owner, you’re always looking for new customers to add to your client list. That being said, we often forget that the easiest way to acquire new revenue for your service business is already in your hands: your current customers.
On average the cost of acquiring a new client costs five to ten times more than the cost of retaining an existing one. With numbers like that, you should consider all of the following tactics to get the most out of your existing clients.
Go for the Obvious Upsell
If it’s obvious that your customer needs an additional service that they haven’t already requested, there is no shame in mentioning it. From the services they already request from your business, think of any additional services that would be of benefit to your customers. The key is to avoid offering services of little value. You want to build trust—essential for loyal and long term customers.
Don't Forget to Stay in Touch
It’s important to talk to your customers, especially the loyal ones. You probably don’t see them as often as you’d like, so calling them once in awhile is a good idea.
Don’t know what to say? Ask them what they thought of their previous service or for general feedback. Customers like to know that you are constantly trying to improve and that you are interested in what they have to say. Keep the interaction low pressure, don’t try to sell anything, and they’ll eventually make their way back to your business.
Reward Customers for Referrals
Referrals programs are a great way to gain more clients and reward existing customers when they recommend your business. You’ll strengthen customer relationships and avoid the extra costs it takes to generate new clients on your own.
Discounts on services is a great incentive you can provide your customers with in exchange for referrals. It’s the perfect push customers need to go the extra mile when recommending your business, because let’s face it…everyone loves discounts.
Ask Clients for Testimonials
Finding your happiest customers and asking them for testimonials is a great way to tell potential customers how great your services are, with the endorsement coming from someone other than you! Testimonials make your company appear credible and fosters trust in your products and services.
How do you find your happiest customers? Sometimes they’ll reach out to you first, but most likely you’ll have to be proactive in your approach. A great way to get testimonials from clients is just to ask for them.
Setting up a simple email follow-up after you complete a service appointment is an easy way to collect reviews. Ensure that you provide clients with an accessible channel to reach you, either linking to a short feedback survey, providing an email address they can send their review to, or linking to your page on a third party review site like Google. Feature these testimonials on your website, business brochures, or any other place your clients’ eyes will land.
Don't Assume What Your Customers Know
Never assume that your customers know all of the services or products your business provides. Even your long-term clients could be unaware of everything your business has to offer. Make a point of reminding your clients of all of your services at least once a year through something simple like an email blast.
How do you get the most out of your existing clients? Let us know in the comments below.