Research by TARP reveals it….
Costs 5x more to acquire to a new client
Than it does to retain and sell to an existing client.
If you’re not actively developing and testing new offerings to your current client database, then you’re overlooking the easy opportunities.
As a business who has provided valuable service to your customers, satisfied their needs, developed great relationships, gained their trust and good-will…you now have a right to…
Leverage that good-will
People don’t buy in a vacuum.
Meaning, if your customer has shown a predisposition to purchase your product or service, then it’s likely they will be interested in similar products or services.
A few simple examples:
- A patron of a hair salon may also enjoy getting their nails done
- A yoga enthusiast could also be interested in learning meditation
- A builder working on a home renovation may know his client would likely want landscaping
- A lawyer may know his clients need prudent financial advice
So get into the mind of your customer. What else can you offer? What would they value and appreciate most?
And it doesn’t necessarily mean you have to provide the service, but it can mean you can profit from it…
The example of the lawyer
John is a divorce attorney.
After years at the job, he’s painfully aware that the majority of his clients need good financial advice. John knows he can’t dispense financial advice. But what can he do?
One strategy he can use is to leverage someone else’s expertise. So John partners up with Sam, an accountant specialising in estate planning.
In this partnership, John extends Sam’s services to his valued customers. Sam gives John’s customers preferential treatment in reward for the very low customer acquisition cost.
In the end they split the profits generated from the partnership. John benefits by opening up an additional income stream in his business, and Sam benefits by getting new customers in the door at a low cost (and the opportunity to work those customers in his own back end).
There are an endless amount of opportunities to upsell and cross sell if you get creative.
Let’s explore how you can get more from what you’ve already got…