Sales professionals put a ton of effort into lead generation. Nurturing leads by marketing, selling and closing customers is the bread and butter. Often, we’re missing out on opportunities by ignoring the customers we already have. There is plenty to gain by marketing to existing customers. In fact, the probability of selling to an existing customer is 60 to 70 percent, whereas the probability of selling to a new prospect is only 5 to 20 percent.
Not only are the numbers in your favor but your history with the client is also on your side. By knowing the ins and outs of the customer’s needs you have that ability to propose a really tailored solution to meet their needs.
Studies show 65 percent of a company’s business comes from existing customers, but most only spend 21 percent of their marketing budgets on customers they already have. So where do we need to focus our efforts when it comes to marketing the customers we already have? Here are some foundational points in the customer journey to zero in on.
Before marketing to existing customers, re-discover
Before you market to existing customers, re-evaluate who it is you’re marketing to. Ask questions like:
- What do they buy? When?
- How much do they spend?
- Are they motivated by discount, do they willingly pay full price or a combination of both?
- What might be the unconsidered need?
Don’t be afraid to get critical and present something that your customer might not want to hear.
Marketing to existing customers in the retention stage
The post-sale period is the most critical test of the customer’s relationship with your brand. You’ve sold them, but now you have to keep them. If you don’t roll out the red carpet and wow them, that relationship can go south.
It’s all about their interactions with your product or service that will either turn them into advocates or walking examples of why someone else shouldn’t buy from you. 92 percent of people trust recommendations from someone they know as well as trust warnings to avoid wasting time on a business if the experience was lacking.
Tactics for marketing to existing customers in the retention stage:
- Plenty of follow-up calls and emails offering customer support
- Ensure your customer is added onto a predefined series of onboarding emails
- Sharing product-focused, tutorial style blogs, videos, webinars to add value
- Get feedback, send surveys and lean on the front-line staff to keep a pulse on opportunity
Marketing to existing customers in the advocacy stage
Advocacy is when you’ve reached the stage where your customer loves you, your product and they’re ready to tell the world.
It’s the continued and focused attention to your existing book of business that will help you overcome many of the obstacles we face in today’s fiercely competitive landscape.