Without customers, you wouldn’t be able to run your business. According to the 2018 State of Inbound Report, 44% of marketers prioritize Increasing revenue derived from existing customers as one of their top priorities in 2019. This could be universal to any business or organization. At Revenue River, (a top digital marketing agency) our clients are our top priority. We know we won't survive if we don't serve them to the best of our ability. Don’t get me wrong, new customers are always welcome, but you should also focus on your current customers. Bain & Company along with Harvard Business School found that increasing customer retention rates by 5% increases profits by 25% to 95%. This also avoids the additional overhead and resources in trying to gain new business.
In order to increase revenue derived from existing customers, you need to understand the importance of the following:
- Value
- Relevance
- Education
Value
Flash forward to a few months into your customer relationship. Whether this is after your customer has purchased a product or after they’ve been using your services for a period of time. The first question your customer is going to ask themselves is a version of “How did they provide value?” The answer they come up with can determine the length of your relationship or number of times they purchase your products or use your services. Most customers will connect success of your relationship into the repurchasing of products or continuation of using your services. Are these services or products your business offers achieving the results they desire? If the answer is yes, then by all means, you are certainly providing value to your customers and this will open the path to expanding their purchases.
- Share wins - how is your product or service helping your customer? Be sure to share this with them so they understand the value your company is able to provide
Relevance
Business is evolving every day. What trends are you staying on top of? Your business needs to stay relevant. By keeping up with trends or changes in your industry, you will be able to offer your client front of the line service and/or products. This will enhance the value you provide and strengthen their trust in you and ultimately your business relationship.
- Attend trade shows or launches of industry related tech or products - how do you keep your business on the front-line if you aren't aware of changes? Stay on top of industry changes so your business can grow with the industry.
Education
Showing your client that you are the experts in your industry will have enormous payoff. You and your team have spent countless hours learning the trade, improving your work and creating value for your customer. Whether that's designing new products to fit their needs or offering services they desire. When your customers are educated and aware of this, once again, it provides value in your relationship.
- Your customers don't know what they don't know - sounds cliché, but it's true. Educate them on the services or products your company provides. Perhaps they are simply uneducated on the potential value you can provide them.
Takeaway
The main focus of your customer relationships is to provide value. Two ways to do this are by staying relevant in your industry and educating your customer. By providing value, you will be able to increase revenue through both new and current customers. It’s worth noting, new customers are important, but expanding current customer portfolios will allow you to spend more time on delivering value and less overhead costs and time finding new customers.
