Be Smart: Sell More to Existing Customers Before You Chase New Leads

Businesses often prefer chasing new leads over pursuing new opportunities to sell to current clients. Although there’s something to be said for the thrill of the chase, selling more to existing customers is much more profitable than pursuing new ones.

The Cost of Acquiring New Customers

To put this concept in perspective, consider the cost of acquiring a new client versus the lifetime value of a happy multi-year client who repeatedly buys from you.  
Selling to current customers who make repeat purchases will generate more profit than constantly hunting for new customers.

That concept runs contrary to most salespeople’s mindset, but it’s essential to keep in mind. The goal should always be to sell more to existing customers. Unfortunately, too many businesses neglect existing customers to chase new leads. 

If we prioritize sales measurements, they should be in this order: customer longevity and lifetime value, conversion of new leads to customers, customer profitability, average sale per customer, purchase frequency, and, lastly, the number of new leads. 

Considerations for Marketing to Existing Customers

Customer retention is a much more important metric than the number of leads generated or new deals closed, as it’s more profitable to expand the sale than it is to land a new client. But how do you retain customers? Unfortunately, it’s not as easy as sitting back and waiting for repeat purchases. To sell more to existing customers, you need to put in some work. 

The first step is to gauge customer satisfaction. Most businesses don’t survey satisfaction, and they don’t see it as a priority. However, 68% of customers leave a company because of perceived indifference. They don’t think that we care enough. 

Regularly survey your clients about their satisfaction to reduce potential turnover and understand what they want. Once you have a good idea of what repeat customers are looking for in terms of your specific products and services, here are some ways to sell more to existing customers:

1. Amp up your customer service. Pleasant interactions with staff can be the thing that keeps your customers coming back, even if they’re having issues with your product or service.
2. Don’t lose contact. Keep in touch with your customers via email newsletter or direct mail marketing, although not so frequently that you annoy them. The goal is to remind them of your company and offer promotions to encourage them to buy again.
3. Reward loyalty. Too many companies give the best promotions to new customers, leaving long-time buyers in the lurch. Instead, offer a rewards program, exclusive discounts, or other special perks to incentivize repeat customers.

Revising your sales strategy to target existing customers is not always easy. A business coach can help you gain some perspective. Please fill out my contact form, and let’s schedule a video call to discuss how to sell more to existing customers.

Coach Dave