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February 18, 2008 | Written By Mason Hipp
Despite the fact that most marketing focuses on getting new customers, one of the best ways to grow your business happens to be marketing to your current customer base. Your existing clients are already familiar with your business, and with a little help, will be more than happy to try new products and tell their friends about you.
In this article, I’m going to explain how to not only encourage existing clients to buy more, but also how to get them to refer their friends as well. An existing client base can be a powerful marketing tool—read more to make sure you’re making the most of it.
The first step in getting current clients to buy more is very basic, and very important. Your clients have to be happy. In fact, your clients have to really like dealing with your company.
Most small business owners are already pretty good at keeping their clients happy, since that tends to go hand-in-hand with really caring about your business. In general, though, keeping your customers happy comes down to the following things:
- Provide something valuable
- Make sure the price is right
- Communicate honestly, and frequently
- Follow through on promises
- Go the extra mile (at least some times)
Almost all of us have at one point done an awesome job for a customer, only to forget to call them ever again. That’s not the right way to leverage your client base.
Most of your clients are extremely busy, and probably won’t keep track of your company on their own—which means you have to help them do it. I’ve personally seen a lot of companies do really well by using email lists (if you have time, some companies do even better with a blog). It’s also always good to give old customers an occasional phone call as well.
Keep your customers in the loop and you can make sure they know about new products, new promotions, and anything else you can think of. Your customers will probably start buying more simply by virtue of seeing your company more often.
The final step in leveraging your client base is to inspire them to go that last little step and make a purchase, or refer a friend. People are usually pretty lazy, and may not decide to do anything unless they have a pretty good reason—so you need to give them that reason.
There are three main tactics that I’ve seen work well with this. The first thing you can do is to encourage new sales from existing clients by offering a special “customer only” promotion. These usually work well, and are pretty easy to throw together.
The second tactic, which is mainly a way to get referrals, is to start a program where your existing clients get something valuable by telling their friends about your company. You could offer a special discount for both the new client and the existing customer, or even just offer your existing customers a percentage of each new sale they bring you. If done well, these referral programs can work miracles.
Lastly, one of the best ways to get someone to do something for you is to do something for them first. If you go out of your way for your customers, chances are they’ll return the favor. Try giving them a special gift (maybe a book or something) or a free service out of the blue, and they’ll probably feel like they owe it to you to tell people about your company.
I’ve mentioned before that it’s much easier to keep a current client than to get a new one, and I’m hoping that this article sheds a little more light on how to get new business out of existing clients. It really can be a gold mine.
How many of you have had success marketing to your existing customer base? Has anyone succeeded or failed wildly (I love interesting stories)?
Hi Mason & Natalie,
This is my first time reading. I was referred to you by Naomi, so you owe her a coffee or a beer as the case may be.
This is a great first post for me to contribute on because I’m dealing with a client that has a terrible track record of keeping hold of clients. She’s an interior designer and her clients tend to be really excited at the beginning of a project, but as time wears on, her clients start to tired of dealing with people in their home all the time. She also doesn’t get much in the way of referrals either, which I’m sure is largely in part to her not staying in touch, but it could be other things I’m not seeing, like how she is with the client.
Anyway, you’ve given me some new juice, new ideas to consider on the subject. Hopefully we can turn her return business around.
Hey Dave,
Thanks for swinging by! I’ll have to thank Naomi for sending you :)
Your client definitely sounds like she could benefit from some careful thinking about how to keep those customers happy throughout the whole project, and then how to stay in touch with them afterwards. I’m sure you guys will figure out a good way to handle it&mdas;I’m just glad I could give you a few ideas.
Good Luck,
- Mason
I can testify that treating your clients like kings/queens makes miracles. I’ve been working as a free lance graphic designer for a few months now, and I can proudly say that all of my clients keep coming back for more :D
Being honest, on time, respectful of their needs while providing great advice and service, as well as sometimes going the extra mile as you said, all of that usually does the trick, and everybody’s happy :)
Long life to long term relationships with clients ! :D
Great tips! I’ve added you to my Google Reader, too. To add to your wonderful advice, another way to “get new sales from old clients” is to keep your word. For example, if you offer a satisfaction guarantee and the client decides to take you up on that for some reason, then keep your word. Keeping your word builds trust with the client, and it never hurts to offer an apology as well as a special discount as an apology gift. Keep ‘em happy even when they’re unsatisfied and they just may give you another chance. ;)
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