Generate More Sales From Existing Customers

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Aside from increasing your customer base, you can generate more sales if you can get your existing customers to buy more from you. You can do this without necessarily spending more. You can see how this works in the following pointers.

Generate more sales with value

Using this technique, companies can increase profits by as much as 30% without necessarily increasing costs. Companies employ 3 methods for this: , and

1) Upsell

Up-selling is getting the customer to increase the size or value of whatever he is buying. A restaurant can entice a customer to buy bottomless iced tea at a higher price instead of the one glass order only, for example. Or a car dealer can get the customer to buy the higher priced variant of a vehicle model.

 2) Cross-sell

Cross-selling means offering a complimentary product(s) to go with the initial purchase. Going by the same example of the restaurant, the order taker can offer side dishes or desserts to go with the main meal. When the customer agrees, then the value of his order increases with little effort on the part of the restaurant personnel, but with exponentially beneficial results.

3) Bundling of products or services

Bundling or packaging products or services requires putting these together and offering it as a package, with a corresponding discount. This can entice a customer to buy not just the basic item that he came for, but enable him to try out your other products and services as well.  By doing so, he enjoys greater benefits and pays a lesser price than if he were to buy the products or services individually.

Each of these techniques generate more sales and add to the total value of the sale without incurring additional advertising, marketing or acquisition expense.

Offer a wider range of products and services

Providing a wider range of products and services instead of just one or two, enables your customers to increase their satisfaction with your company, and locks them in so they no longer have a need to go to other providers to have their requirements met. When clients avail of more than one product, you are able to generate more sales from that customer without the extra effort of finding a new one.

If for some reason, you cannot offer as wide a range to satisfy your customer needs, then you can tie up with another company offering complementary, not competing products.

Increase the Frequency of Repeat Business

To generate more sales from the same customers, have them keep coming back to avail of your products or service. You can motivate your customer to buy again by regularly updating your products or services, offering something new, or in general offering exceptional service. Businesses rarely make significant amounts of money on the first sale, but they have a greater opportunity to increase profits with the succeeding sales of each customer.

Keep track of your customers’ profiles and buying habits

Knowing your customers’ profile (such as age, status, with children or not for example) and what they have bought in the past, can tell you what products they are likely to buy again and generate more sales.

You can keep these customers informed of your latest promotions or incentives for products they have shown interest in, or products they are likely to buy for the first time from you, given their profile.  You can thus advise them should you have new products to offer, or entice them with a discount or a token to try out a bestseller item of your company.

Extend the lifetime of each customer

This works especially well if your company enters into a contract to supply products or services for a year or a specified period of time. Ensuring that the contract is renewed year after year generate more sales as you save on the customer acquisition cost starting on the 2nd year of doing business.