DON'T OVERLOOK YOUR MOST PROFITABLE SOURCE OF BUSINESS
A new business owner called me recently with a question I hear
often. She asked, "What can I do to build my business faster?
I'm making a small profit but cannot seem to generate enough
sales to make the real money in this business."
As Karen answered some of my questions it became clear she had
done a good job of targeting a niche market. She also provides a
compelling reason for prospects to do business with her instead
of with her competition. She was obviously effective at
attracting customers because she already had over 100 of them.
In fact, she was so busy chasing down new customers she
completely overlooked her existing customers as a source of
additional business.
HIGHLY PROFITABLE AND EASY TO GET
Your existing customers and clients already know and trust you.
It's easier for you to get more business from them than to get
business from new prospects. It's also more profitable than
business from new prospects because you get it without an
advertising expense.
Some businesses have natural repeat sales built into their
operation. For example, most MLM companies sell consumable
products that periodically need replacing. And web site hosting
services collect a new fee at regular intervals to keep your
site up.
These replacement needs automatically generate repeat business.
But how can you generate additional business from customers when
it's not automatically built into your product or service?
HOW TO TURN A ONE-TIME SALE INTO REPEAT BUSINESS
To capture additional business from your existing customers you
have to find or create additional products or services your
customers are likely to want. Start by asking yourself what else
you can offer your customers and clients to improve their lives
in the same area as their original purchase.
One type of product every business can use for repeat sales is
instructional material. It can be a book, videotape, audiotape,
software or any combinations of them.
For example, a pet store owner I know of regularly sends her
customers special postcard offers for some of the books and
videotapes she stocks in her store. She sells a lot of books and
tapes this way. It also generates a lot of profitable referrals
from her customers.
AFFILIATE PROGRAMS
Affiliate programs are especially effective for generating
repeat business from existing customers. Just announce the
product or service to your customers and include your personal
endorsement of the program. The affiliate program handles all
aspects of the transaction and pays you a commission.
The cost of finding new customers is a big expense. Maximize
your return on this expense by getting all the business you can
from these customers. Create or locate other products or
services you can offer them. You'll be amazed at how easy it is
to get additional sales from customers -- and how much
additional profit it generates for you.