The ROI of Selling More to Your Existing Customers

In any business setup, potential sales from two different categories; customers who have already bought from your company, and those who haven’t yet. Most companies focus on customer expansion into new fields which often takes time, money, and effort. While expansion is vital for sales and continuity, most sales teams ignore the simpler and cost-effective strategy; focusing on increasing sales to existing customers. So, what is the ROI of selling more to these customers? Read on to find out!

1. Minimal Low-Cost Marketing

Selling your products and services saves you a huge chunk of money that would have otherwise been used in marketing. Since they already know your business and products, you do not have to spend money on ads or convincing them to become your customers. To sell to them, you simply need to engage them in some interactions or bring up an irresistible offer.

The only catch here is that you must have made a positive first impression with them. If they had a pleasant experience doing business with you, they may even talk about your business to their friends or leave positive reviews which is a free advertisement. Every time they tell a friend or speak well about your business, they save you loads of funds on adverts.

2. Saves You Time

Time and money are the two most valuable resources that your business can take advantage of. By focusing your efforts on existing customers, your marketing team saves time as they do not need to research the market or identify targets.

Your marketing team already knows who they are and has their demographic information. With these details, you can know what they may want to buy next or cross sell depending on the primary products. For most of them, you even have their contact information thus easier to reach out to. All this takes less time as compared to new customer expansions.

3. Increased Revenue

Unless you are operating as an NPO (Non-Profit Organization), all businesses are in it for profit. You want to boost your customer revenue and limit any unnecessary expenses. According to recent research, existing customers are 50% more likely to try new products and spend 31% more than new customers.

Your existing or current customers are generally more reliable and you can employ various strategies such as upsell, cross sell in your marketing offers. They are more likely to try new products or acquire upgrades as compared to new clients.

Further research and studies show that existing customer sales have higher margins than new customers. The existing customers already know you and what you can do as you have already proven yourself to them. As such, you do not need to spend extra money and time explaining your value to them. The customer sales you make are ultimately higher, thus more customer revenue.

4. Increased Retention and Customer Relationships

Customer retention involves a lot of aspects. The first and most notable one is by offering high-quality products and services. Once you win them with quality, you can now focus on customer marketing to constantly remind them about your company, the products as well as the value.

The best way to keep tabs on them and add value is by including educational material in the messages. Since you have their demographics, you can further tailor the messages and content to their specific needs and wants. This personalization enhances retention, which increases the net revenue retention.

As a business, you must also make CRM integrations to stand out from the competition. Providers such as Retain are here to help you enhance your net revenue retention effortlessly within minutes. The systems are easy to maintain and update in a short while. Whether you are looking for a flexible sync of data or modern data mapping, Retain is your ultimate answer.

Besides enhancing revenue retention, you will also strengthen the relationship with your existing customers which benefits you and them. When you help them achieve their goals and ambitions, they feel valued and more inclined to make more purchases from you. You will become their trusted and responsive resource at all times. This boosts satisfaction and builds brand loyalty.

Conclusion

As you can see, existing customers have a lot to offer your business when it comes to sales. They are a valuable asset to ensuring that your company makes profits thus important that you retain them. Be attentive to them and ensure you provide consistent value lest they slip away. Remember that sales are all about balancing your efforts on new and existing customers.