There are 2 ways to increase sales volume:
1. Finding new customers
2. Sell more to existing customers
Most companies seem to focus naturally on the 1st option.
Traditional sales training and methodologies the story could have focused on selling new business, often to the detriment of the development of existing customers. The reality is, however, that it is usually less expensive, and consequently more profitable, to sell more to an existing customer than to win a new customer.
Here’s why.
It costs less to sell to existing customers
Selling new customers requires a coating. During which time you convince prospective customers to do business with your company. Once they landed, and assuming that you do an exemplary job of meeting the requirements, selling to them again and again, and more and more, becomes easier. Plus, they’re so much more existing customers can do for your business.
Existing customers will refer you.
Where they refer you to other divisions of the company, to other companies, existing customers will offer you a valuable source of potential revenue. Referrals generally, only come from existing current customers comfortable enough to stick their necks out and recommend you.
Existing customers will pay more
Existing customers place a value, first, on the time it received in not having to re-educate suppliers but the basics of the organizations working each and every time they need help, and second, on the lesser risk that is attached to doing business with someone they know will address the requirements and quality fashion, on time, And within the budget. This is added value for which they will all gladly pay.
Since it is clearly more profitable to sell more product or services to existing customers than to find new ones it becomes even more critical to keep a pulse check on the relationship., Account teams must take control of relationship development. Be sure they’re not too afraid to hear what they’re doing wrong continually seeking feedback about how you and your product or services are perceived, or too modest to hear what they’re doing right.
1. Ask are we willing up to your expectations?
2 how can we improve what we’re doing for you?
3. Is there anyone else within the organization to whom you feel we should be talking?
4. what new challenges might we be able to help you meet?
It is vital to make all us of questions that you believe will help you either a improve your deliverable product or services or be introduce new products or services to existing customers.
Do it again, and again, and…
Make customer development an integral part of the way you do business. Ensure that everyone on your team understands the partly most playing in maintaining and developing good profitable relationships with your major accounts. With almost every other aspect of your business environment is changing at a rate that makes even medium term planning and difficult, customer relationship management provides a reliable link to a profitable future. Invest in.
To learn how your business stacks up from a sellability stand point, go ahead and take the free business assessment – http://www.sellabilityscore.com/advicoach/james-lawson
James Lawson is one of Northern Virginia’s top Business Coaches. He works with and helps business owners TRANSFORM their business from where they are to what they ultimately want, creating value and wealth.
STRATEGIES4SUCCESS 