If you are looking for new channels to increase revenues, you don't have to look very far. Your easiest source of new revenue is right under your nose: existing customers.
According to statistics compiled by The Chartered Institute of Marketing, acquiring new customers is expensive (five to ten times the cost of retaining an existing one), and the average spend of a repeat customer is a whopping 67 percent more than a new one!
Another study by the Harvard Business School revealed that increasing customer retention rates by 5 percent, increases profits by 25 to 95 percent.
So, while every business needs new customers, make sure your salespeople know that selling to your current customers is just as important. Here are some tips to help you create lasting loyalty and keep customers coming back for more:
1. Stand for something
If you want loyal customers, you need them to care about you. A study by the Corporate Executive Board that included 7,000 consumers from across the U.S. found that of those consumers who said they had a strong relationship with a brand, 64% cited shared values as the primary reason.
2. Create lasting impressions
Too many times salespeople are too busy thinking about the speed of the sale - "Did we meet our number? How many deals did we close? How fast did we close them?" - instead of focusing on the quality of service they are providing. They forget that their engagement, or lack thereof, creates an impression that can make or break a deal.
And it’s not just the first impression that matters. It’s the first, second, third, and every impression after that which will help shape the way a prospect or customer thinks about an organization – and whether they choose to repeat business with them. In fact, according to a study by the Gallup Group, customers were nine times more likely to be engaged with a brand when they evaluated the service as “courteous, willing, and helpful.”
3. Promote product awareness
Promote product awareness for your salespeople. Make sure they are aware of what’s selling well, who it’s selling to, and what’s not working. The more they understand everything about the product/service, the better they will be able to sell it.
To aid their sales teams, many companies are implementing performance support solutions that provide next-best-action sales recommendations in real-time. These solutions identify sales opportunities by analyzing the customer profile and eligibility for possible promotions or upsell/cross-sell opportunities while the call takes place. That way, the sales person can concentrate on the conversation.
4. Build your reputation
A good reputation is golden. Your company’s reputation is closely related to the reliability of your products/service and the level of customer support you provide. The more reliable these are, the more likely your company is to have a favorable reputation. If you are reliable, honor your promises and warranties, and are considerate of your customers’ time and concerns, then they will undoubtedly feel that doing business with your company is a pleasurable experience that they would be happy to repeat…and tell their friends.