The Hottest New Market: Your Own Customers!
Often, when we want to boost revenues, we think about drumming up new customers. But why not look to your existing customers instead? You spent a significant amount of time and money winning them over. If you treat them right, they can become your most fertile ground for growing sales. Tapping into this market is called customer marketing.
Here are some of the key categories for this approach:
Cross-sells: These are products related or complementary to ones your customers already have. For example, if they recently purchased a new television, they might be interested in a new Blu-ray player, as well.
Upsells: Here you are selling new, improved versions of products customers already own. If a family owns a 2015 Honda Accord, it might be time to see if they want to trade it in for the 2019 model.
New product introductions: Every company introduces new products. Who better to introduce them to than to people who already like your stuff? Direct mail showing previews and sneak peaks is a great way to generate excitement.
Inventory clearance: There is always inventory that needs to be cleared to make way for the new. Clearance prices are a great way to woo new customers, but you are likely to get a better response from existing ones.
Relationship-building: The value of winning new customers grows over time. The longer customers remain loyal to you, the more their value grows. Sometimes marketing designed purely for relationship-building has a value of its own.
How to maximize customer marketing? Track, test, and analyze results the same way you do any other target audience. Studies consistently show that brands that track regularly report the most revenue growth.
Need help with cross-sells, upsells, or other customer marketing campaigns? Let’s talk!