Every business has a gold mine in its current customer base. But not all business owners remember to mine this gold because they are too busy trying to attract new customers or developing new products or services. This is the perfect time of year to step back and remember the three easiest ways to grow business revenue using existing customers.
Upsell current clients
Offer steady customers a product or service with more features than they usually purchase. Examples include moving a client from coach to first class, from a standard model car to a luxury version, from an off-the-rack suit to a designer suit, and from a regular meal to a super-sized one.
Some customers simply need to be given permission to splurge on themselves, so indulge them in 2018. Others have outgrown the standard package but find it hard to break routine. With a gentle nudge, a percentage of clients will purchase the upgrade, boosting sales with little effort needed.
Cross-sell current customers.
Restaurants practice this the most, asking customers about appetizers, desserts, or side dishes with the requested entrée. This same practice can be applied to business too. Let’s say a business has two services, but the client is only participating in one of them. The business owner should make sure the client knows about the other available services, and find out if they have a need for it.
This is called cross-selling, where a current customer is offered a service or product they don’t already purchase. For example, an attorney that does trademark work for clients might also let clients know they do wills, too. Or a real estate agent who also manages properties will want to let rental property investors know about this other service as well.
Raise prices on current customers.
If a company’s costs have gone up but their prices have remained the same, they have accidentally given themselves a pay cut. No one wants that, so raising prices is an option that will restore profit margins to the way they were before costs went up.
If it’s been a while since prices have been raised, it might be time to make an adjustment. Review each service and product price list to determine what is needed to bring the numbers back in balance and let Lucrum know if the team can help with some profit margin or breakeven calculations to help make this decision.
Raising prices requires careful consideration and timing. Customers do expect periodic price adjustments, so don’t let procrastination or fear be responsible for not making a good solid business decision in this instance.
All three of these strategies will help raise the average revenue per customer and boost the overall revenue of any business without a lot of additional work. If you’re interested in applying any of these strategies to your business this year in order to boost business operations, call Lucrum Consulting at 704.927.0462.