If you’re looking for an effective way to increase your sales without spending more on ads, then customer relationships should be at the top of your list.
Your existing customers are the best people to help you market your business, as they are already familiar with you and your products or services and are more likely to purchase from you and even recommend you to others.
There are several ways to take advantage of this potential, and in this blog, we will show you how to use customer relationships to grow your business.
Asking your existing customers for referrals is an incredibly effective way to increase sales and generate new business quickly.
It’s a no-brainer; identify your good customers and let them know you value their loyalty and want more people like them!
Flatter them with appreciation and reward them for sending over new faces; offer each customer a voucher to give away, as well as one to keep for themselves.
It’s a genius marketing scheme that works every time: you get affordable advertisement out of it and enhanced sales -your existing customers will refer others, who then pass on the referral buzz to their friends and so on!
Another way to supercharge your current customer base is by teaming up with other businesses.
Joint venture marketing is one of the most exciting yet under-utilised forms of marketing out there and a great way to increase sales!
Here’s how it works …
Find local businesses that cater to a similar audience as yours, and offer them a deal.
You give away their vouchers or referral cards with your products, and they do the same for you.
It’s an effective way of generating new customers without spending too much money.
For example, I know of a mechanic who works with a panel beater.
He gives the panel beater the following vouchers to give away to customers (with a short note to say nice things about the mechanic):
- A free set of wiper blades (fitted);
- A free WOF;
- A free engine steam clean;
- A half-price service;
- A free safety check.
The more generous that your offer is, the more likely it is the prospect will take up the offer.
The cost of the offer is your investment to gain a new customer.
Let me finish by saying that this tool has the ability to return tens of thousands of dollars in extra business, especially when you consider the lifetime value of a customer.
It costs very little to implement and will set you apart from all your competitors – how many of them are doing this?
Here is what you need to do:
- Find a joint venture partner whose customers fit your target market;
- Develop a special offer or giveaway that would appeal to those customers (low cost to you; high value to them);
- Create the offer as a voucher, flyer, letter etc;
- Approach the other business owner and sell the benefit of the idea in terms of their interests, not yours.
Note that joint advertising is rarely an equal proposition: one party almost always pays more than the other, as they stand to gain more from the advertising or bring less to the combined project.
Be flexible and ready to compromise.
It is often said that it is more expensive to get a new customer than to keep an existing one.
For this reason, it is important that you strive to build a relationship with your customers.
Answer queries quickly, make sure complaints are dealt with swiftly and always try to exceed their expectations.
This will ensure that you build a positive, rewarding relationship with your clients and allow you to decrease your advertising costs in the long run.
Also, if you want customers to keep coming back, give them a reason to do so.
They have already bought from you, so it doesn’t take as much effort to get them to make subsequent purchases.
Cafés know how powerful this is because they offer their coffee cards, e.g. buy ten coffees and receive your next one free.
They know that the free coffee only costs them less than a dollar.
This strategy works well for businesses that offer products and services that customers regularly buy, as opposed to items they buy rarely.
Don’t forget the real world
Depending on your target market, “real world” advertising – as opposed to online, virtual adverts – can still be the best choice.
For example, flyers and leaflets can be a very successful yet inexpensive form of advertising.
The important thing is to ensure that your ads reach the right audience.
For example, if your target market is women, you should distribute your flyers or leaflets in areas frequented predominantly by them.
Ideal areas are near beauty stores, clothes shops, hairdressers, and gymnasiums.
This will help ensure that your flyers are reaching the right audience and are, therefore, more effective.
Finally, remember to have fun with it.
Using humour can also be an effective way to increase sales, so you get the best of both worlds – a fun approach that still strengthens your brand and has tangible results.
There’s nothing wrong with having fun while growing your business!
– Insight CA Limited – helping business owners succeed since 2013.
Are you struggling to make your business work?
Insight CA Limited is a team of experienced Auckland-based chartered accountants and business advisors who can help.
We’ll give you the power to see what’s really happening in your business, so you can take control and start making progress.
Click here to learn more about how we can help you achieve your goals.
Are you struggling to make your business work?
Insight CA Limited is a team of experienced Auckland-based chartered accountants and business advisors who can help. We’ll give you the power to see what’s really happening in your business, so you can take control and start making progress. Click here to learn more about how we can help you achieve your goals.