More Profits From Existing Customers

Many sales and marketing management clients ask, "How can I generate more profits from my existing customers without spending anymore money?" This is a smart question, because it faces the fact that no matter how much revenue you create, it's only the profits that matter. So, here are a few ideas from my client files ...

Generate more profits from existing customers without spending more by:

1. Reducing time between transactions. Instead of waiting for customers to come to you, especially with consumable items, get customers on automated delivery programs that optimize resupply with usage. This means, don't let the customers wait to reorder. Help customers use more without creating waste.
2. Increasing transaction size. What else does a customer need that they aren't buying from you now? By really understanding how customers solve problems you'll discover other products or services that you may offer, but customers aren't already buying. Be sure to provide customers a complete solution, take the time to build up orders for necessary items.
3. Build in high value unmeasurables. No matter what you do, there are little extras that add value to what customers receive but cost very little to deliver. This could include training, coatings, or materials that improve what customers receive. Do you have "Premium" versions of your existing products?
4. Offer custom solutions around your core products. Providing custom solutions introduces your company to new ideas that enhance existing products, while providing a tailored solution for your customer. Custom solutions adds higher margin add-on work that enhances the overall margin on the project.

These ideas will just get you started. I've documented more than 101 strategies to attract more profitable customers. Incorporate these ideas into your sales planning meetings or when updating your marketing plan.

The greatest advantage of selling to your existing customers is they are highly qualified, already familiar with your business, and predisposed to buy from you again. This means, your first sale should setup the second sale and so on.

Even if you have a one-time sale, or large ticket industrial business to business solution, these ideas can help you add 70% to your profits from existing customers, without spending anymore, in 12-months or less. I've helped clients do just that. (Of course, this assumes you can profitably deliver your products or services, but that's something I can discuss in another message.)