Whether it’s more cost effective to recruit new customers or increase profits by cross-selling to current customers is the proverbial no-brainer; that is to say, estimates vary, but the consensus is that it costs at least five times more to win a new customer than to increase business from current customers. As such, the best way to maximize your profits is to cross-sell to the customers you already have.
You should also consider that getting new customers is more expensive than keeping current customers. Customer Churn is expensive if for no other reason than it increases your administrative costs. And you certainly can’t cross-sell to customers you no longer have. Keeping your customer base happy is essential to your success.
A big part of being able to effectively cross-sell to customers is your dedication to quality assurance/ quality control. Whatever you sell, it must represent value to the customer. QC/QA must be a major part of every customer interaction – from sales to shipping to service. This will differentiate you from your competitors, and will make your customer base amenable to the new products and services you plan to offer. Whatever your business, your goal should be to establish yourself as the “provider of choice” to your customers.
Mastery of Social Networking
Facebook, Twitter, Instagram etc. are no longer optional. Your customers use and depend on them, and so must you. Promotions, advertising and positive online word of mouth are all components of the effective use of social networking tools.
Measuring and Monitoring
There are many tools, such as Customer Relationship Management (CRM) software, that can help you track and measure the effectiveness of you efforts, as well as build an easy-to-use customer database. These tools are no longer expensive (open source ones are free) and require no computer hardware. As the old business adage states, “If it can’t be measured, it can’t be managed.” And if it can’t be managed, it’s of very limited use to your cross-selling efforts.
This article represents just the tip of the iceberg. There are also loyalty programs, email campaigns, relevant product upgrades and myriad other techniques and technologies. The best way to maximize your profits is to maximize business from your current clients, and the best way to do that is to expand, enhance and optimize your existing customer relationships.