Marketing, Sales »

[Jul 3, 2009 | 0 Comments]

I was recently going over some Paul Lemberg F5 material and some well known but often overlooked statistics hit me like a ton of bricks....I knew that selling to existing clients was much cheaper and easier than acquiring a new customer and I talk with clients about this all the time but I didn't realize how drastic the numbers were: The average chance of selling to a new prospect is 1 in 8. The average chance of selling to an inactive clients is 1 in 3. The average chance of selling to an active client is 1 in 2. Now there are a few (and I mean very few) businesses that literally cannot sell to past clients - for instance- if you run a funeral home return business is a tough proposition! If you only offer one product or service then develop another one and market that. There is always opportunity with a complimentary product, service, special attention, etc... Existing clients that are happy with the current service you are providing them will often bump up to a product that is 3 to 5 times more expensive if you can show them the value that comes with the price tag - especially in a business to business environment. The fact is most of your clients have no idea that you even offer any products or services other that what they are currently purchasing from you. Sometimes it is as easy as showing them an example of work that you did for someone else. I once sold a huge amount of print work by just showing a client a catalog that we did that I was particularly proud of. His response, "You do print work?" This was someone that I had been working with for years and as far as he knew my box was web design and development. So the question to ask yourself is what products or services do you have that many of your customers don't know about? If you aren't sure some quick reports out of your accounting software should be able to tell you. Once you identify them make a list of your customers and segment the list so you can market differently to each group depending on their purchase history with you. Send an email blast, host a lunch-and-learn, send out postcards or simply pick up the phone...doesn't really matter what method you use as long as you do it - you will be surprised by the results. As I said before this point is fairly well known but we all need to be reminded from time to time and that is the exact reason I am writing this post, to remind myself!  Have a great Independence Day!