Making the most of your existing customer base

Making the most of your customer base is important in any business. The cost of marketing to generate new customers is significantly higher than communicating with to your existing customers. Marketing to existing customers is not only cheaper it’s also generates higher conversion rates.With this in mind making the most of your existing customer base and capitalising on every opportunity to maximise revenue from each of your existing customers is one of the best ways to make your business more profitable. Most businesses would like to think they do get the most out of their existing customers but the only way to know for sure is to regularly ask yourself the following questions;

When was the last time you offered your existing customers something new or even an upgrade?

Offering your customers new products and upgrades is one of the simplest ways to generate new revenue because its human nature to want the latest products especially if there are new features or enhancements. Perhaps more importantly keeping your customers up to date and offering new products it is good customer service. If you don’t offer your customers new products, services or upgrades they may take their business to your competitors who do. Ultimately not only could you miss opportunities to earn some additional revenue but you may loose customers.

Do you look out for opportunities to offer additional value added products?

Why offer your customers 1 product if you can offer 2 or more, especially if you can offer an additional product that they really appreciates because it truly adds value? For example; if you sell a clock, offer batteries. Or if you sell a TV offer insurance, a DVD player and TV stand. Don’t be complacent, if you keep looking for new products and services that compliment your existing products then you’ll provide your customers with great customer service whilst also making excellent profit margins.

Do you look out for new innovative products and new suppliers to offer your customers?

Times are constantly changing, products are evolving and new suppliers are constantly starting up. If you want to stay ahead of your competitors, retain your customers and generate as much revenue as possible from your existing customer base you need to look for new products as suppliers. New innovative products and suppliers can save you money, unlock new revenue streams, retain existing customers and win new customers for your business. If you’re a dinosaur who thinks you can sell the same products for the rest of your life your business will become a part of history!

Could you monetize unused space on your website with relevant banner ads for your products or affiliate ads for another company?

If you have a website and even a small space, for example 120 pixels by 120 pixels, you could almost instantly start generating new revenue by placing a relevant affiliate banner ad on your site. To be effective you need to think about the demographic of the visitors to your website and offer relevant ads because this will appeal to your customers and generate more sales. It is possible to use content driven ads such as Google Ads but these are often not as targeted as you may think. It’s better to find an affiliate program where you can choose the ads that fit your website best and also pay the highest commissions.

What about partnering with companies that can offer your services to their customers or indeed offering their services to your customers?

Mutually beneficial partnerships are perhaps one of the most effective ways to help your business make the most of its existing customer base. Communicating with your existing customers costs nothing or virtually nothing in comparison to marketing to new customers. It also generates much higher conversion rates because of the existing relationship and trust. Find partners that have a quality products or services that you can offer your customers and enjoy additional revenue from the sales. Ask them to offer your services to their customers in return and get double the value from a true mutually beneficial partnership.

In reality it’s probably impossible to know exactly how effective your business is at making the most of your existing customer base but one thing is for sure, if you’re not asking these question yourself and looking for new opportunities to generate revenue from your existing customers you certainly are not making the most!!

There are hundreds of ways to increase your revenues from your existing customer base so why not have a look now and then spend 5 minutes periodically to make sure you are not missing valuable opportunities for your business?