The millennial era offers various business strategies to help you grow your business. However, one main objective of growing your business is to increase sales. You may explore and develop creative business strategies, but if you fail to sell them, the company is not achieving its business goal. This blog will cover 4 simple ways in which you can increase sales from existing customers.
"Sales" is the heart of a business. This is why most companies invest most of their attention and budget on the marketing team to increase sales. To clarify, it doesn’t mean that the others are not as important, but companies must take good care of their “heart” in order to stay alive.
One of the easiest and most preferable ways is to increase sales from the company’s existing customers. That is because maintaining existing customers costs less time and money compared to acquiring new ones.
Furthermore, not all the conducted efforts for getting new customers are guaranteed to a positive outcome. Therefore, preserving continuous relationships with existing customers is a good start.
Generally, it is more effective to sell products when you understand the customers' trends and demands. With your existing customers, you have a track record of their purchasing history. Research and analyze your customers' purchasing histories will help you understand their habits and preferences for your future offers. Generate more returning customers as your second objective.
By understanding your customers, you will be able to build better offers, or even develop new products based on your gathered information on them, and eventually, increase sales. Now the question is, how do you get to know your customers and understand them better? Let's take a look at the case below:
Mary owns an online fashion store selling casual to formal attires for all genders. After some time, she realized that some of her products are not selling well. Therefore, Mary decided that she wants to niche her target market by trying to better understand her customers.
First, she studied the gender and age range of her customers.
Second, she looked for patterns on which dates and products her customers typically make orders.
Finally, she added a short customer satisfaction survey at the end of every purchase. With that survey, she gathered more information on her customer's occupation, the preferred price range for clothing, occasions they use the products for, and some spaces for comments and feedback.
Mary is now ready to focus on fewer products that are in higher demand and will generate more sales.
Your relationship with customers does not end after one transaction. Your customers are exposed to other appealing offers from your competitors. To increase sales from your existing customers, you want to make sure they will return for second, third and more purchases in the future.
For that reason, it is good to have more USP (Unique Selling Point) for your business that differentiates you from your competitors. One strategy is by providing an excellent post-purchase service despite their satisfaction with your products. This could be done with low or no cost at all.
Stay in contact and follow up with your existing customers, but not with meaningless direct sales offer that they will overlook. Be personal! If you have a small business, this will be your advantage as you have a smaller number of clients to manage.
With the same case, here are 2 tips you can implement from Mary's effort to maintain a relationship with her customers:
"How you sell matters. What your process is matters. But how your customers feel when they engage with you matters more." - Tiffani Bova
If you have done steps 1 and 2, this means that you have gotten to know your existing customers well enough to design various programs as part of a strategy to increase sales. It may vary from bulk buys, purchase incentives, to various rewards or loyalty programs that they will be interested in.
For most retail businesses, loyalty programs usually involve a physical card where customers collect points each time they made a purchase. The points are then to be exchanged with a reward in the form of free items or a special discount.
Your small business will gain an advantage as you can create more personalized sales and loyalty programs for your customers to make them feel special. In the future, they will be more likely to return for more purchases and hence, increase more sales!
Mary's Fashion Store will give you an idea of how to develop a creative loyalty program as part of her strategy to increase sales:
After progressively increase sales from her existing customer and some of her new ones, Mary's Fashion Store starts to offer a unique loyalty program. She charges $29.90 for customers who are willing to be a member of the program. This fee is to be paid once and customers are applicable to receive all the benefits below for all year round:
Last, but definitely not the least, making use of technology can help you do a lot of work. In this digital era, you can use various applications or social media to help create automated marketing strategies that lead to an increase in sales.
Find the best CRM (Customer Relationship Management) software such as Salesforce, Zoho, and Goldmine, suitable for your preferred marketing strategies. These apps and software will help you organize your customer information and customize your sales efforts.
There are many products that will assist you in automating your sales process. A software that can automatically notify your customers via text messages and some CRM programs have the ability to help you manage your email campaigns. If your business has a limited budget for any of these incentives, the simplest way to market your business with less or no cost at all is through social media:
Finally, Mary takes advantage of social media as her tool for free advertising and marketing campaigns. She updates the latest products, special celebration day discounts, and any news regarding her business on mainly Instagram and Facebook.
One of her campaigns is by encouraging customers to post photos of them wearing Mary's products and tagging 3 friends to win discounts on the next purchase. As a result, not only the business experienced growth in sales, Mary is also creating brand awareness for more potential customers with the help of her followers through social media marketing.
It is a wise decision to focus on increasing sales from your existing customers as it is a more sustainable effort that will keep growing within your business. Furthermore, providing customer service on a more personalized form could be advantageous to retain your existing customers. If your customers are satisfied, they will be the ones who acquire customers in the future for you anyway!
“Revolve your world around the customer and more customers will revolve around you.” – Heather Williams
Psst, there are some relevant guides that you might need:
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