In order to increase sales, many businesses believe the only way is to find new customers, but a number of experts say that this strategy leaves out an obvious potential source of new sales. It's much easier to get an existing customer to buy from you than to convince a new customer to take the plunge. "They're forgetting about low hanging fruit -- their existing customer base," says Osteryoung. "If I want to expand sales, the number one place to go is the existing customer base. They already trust you."
Here's how to increase sales with your existing customer base:
• Bundle products. You can "bundle" a few products or services together for a special price to try to get an existing customer to try some of your other offerings.
• Try the "upsell." Convince your sales staff to go back to existing customers and try to sell those clients related products or services. A common example is a warranty, Osteryoung says. Think of how many times you've purchased electronics and a sales person has tried to sell you on an extended service plan. Customers sometimes take the bait.
• Offer inside information. If a customer is eyeing a product but about to put it back on the shelf, make sure you let them know that the product is going on sale the following week. If you monitor your website's online shopping cart, you may email an existing customer who didn't complete a sale and offer them a discount to complete the purchase.
• Think about customer rewards. Like the airlines have done with frequent fliers, there is no reason a small business can't reward good customers with a loyalty program. Offer a discount on their birthday or for every 10 purchases give them one for free.
• Give free samples. Offering freebies isn't necessarily going to cost you an arm and a leg, but it can increase sales by engendering good feelings among existing customers, convincing them to pass on the sample to a friend or family member, and/or convince them to buy your latest hand cream or ice cream flavour.
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