In today’s highly competitive market, the growth of a business is necessary for its survival. And, for this, they must keep on acquiring as many leads as possible. For, the higher the conversion, the more stable your revenue will be in the future. But in this course of scaling up, the company’s customer service tends to lower. This is the point where customers start holding grievances against the company and brand value starts to depreciate. To avoid this, it is important that companies invest in their existing customers also along with bringing in new leads. According to statistics, if a brand can increase its customer retention just by 5%, it will see a boost in profit by 25-95%.
So, here are some tips that will help you retain your existing customers. Because 56% of them stay with the brands that truly understand them.
One consideration that every brand needs to make is to optimize how they are utilizing their current revenue models. This is how they will get the right knowledge about the customer’s spending habits and propensity. You can offer them realistic upselling that they are comfortable with. This is a great way to increase your current revenues. If you do not have the right set of data yet, this price point testing will be extremely beneficial to you. The results will also enable you to increase brand engagement.
When you are selling products on behalf of the brand, it seems a lot shallower. Instead, try selling your expertise to the customers. Look for possible technology integration which will bring you recurring revenue opportunities. With the help of these, troubleshooting and system monitoring will also get quite easier. There are other benefits to this too. You will have constant surveillance of how the cash flow is in your system. If you know the cash flow in your system, you will be able to capture the next of your big customers.
When you understand a client and the way they are doing business with you, you will get to know more than half of the entire thing. You need to begin by listening to them meticulously. This is the best step to becoming their trusted friend. When you have finally worked on this, you can start helping them with the solutions that they need to know. Create and deliver information that will help existing customers resolve their pain areas and suit their best needs. They will start becoming more confident in themselves and will start considering you an integral part of their entire business.
If you want to implement a strategy that yields results, then it has to be this. Meeting the customers every quarter will help them reinforce their belief and trust in you. This strategy is a three folded approach though. The strategy begins with seeking feedback from the clients you have already sold to. The next fold involves seeking their ideas and inputs to improve the product formation or upselling. The third fold involves setting up newer fortes or departments which have not yet been sought or served. This will be growing your existing business rather quickly.
Pricing is a point that can make or break your market share. If you have not worked on your pricing for long, it is time you should think about revisiting it. Keep the pricing aligned to the current inflation rate and go through it regularly to review the inputs. If you want to drive your revenues and gross margins, the right pricing is going to play a crucial role. You should also start thinking about offering a premium stake. Statistically, about 20% of the customers are already ready to pay you more than they are paying right now.
By expanding the product line, you will be able to gather a larger market share in no time. If you can provide them with endless opportunities with new products and services, they will be baffled. The total addressable market will grow in no time and more people will be keen on exploring your brand. Try venturing into newer and untapped markets as part of this strategy. Try getting an omnichannel brand if you have been present in a single channel all this while.
You need to have a plan of multifold selling if you want to acquire a new set of customers regularly. Upon having a solid customer base, try venturing into upselling and cross-selling your products. These are effective in encouraging the existing customers to try newer products. This does not involve high efforts yet the results are delivered soon. You can also distribute free samples of your new products to have your business growing. They will be elated to be a part of your product launch and you will also get first-hand feedback from them.
No matter which business stage you are in, you can always expect your business to grow by offering new goods to your existing customer base. You can rectify your strategies to gain better results too.