Sharp businesses focus on their existing customers and clients because they know that the money will follow if they deliver value and develop a deep-rooted relationship with them. Looking after existing customers is a cheaper and more effective method of securing revenue visibility than traditional ways of gaining new customers.
Here are some ways to create new income streams from existing customers:
1. Offer Upgrades and Additional Services
One of the best ways to engage existing customers is to offer them upgrades and complimentary products. This is a comprehensive idea and can be used in many different ways. Almost all small and big businesses use this technique to create new income streams from their existing customers. One example of such a scenario can be a boutique that offers 20% to its existing customers. Let’s say you already bought a dress from the boutique, and the sales representative at the store tells you that you can save 20% on the new make-up set that they are also offering. This would help the company sell its product and generate a new income stream from an existing client.
2. Conduct Research
You can ask your existing clients to complete surveys for you that would help identify new methods of generating income from them. But it is better to hire an expert to develop the surveys for you. This is one of the most effective and efficient ways of identifying new ways to create additional income streams from your existing clients.
3. Offer Services With Recurring Payment
Nowadays many of us have memberships of different online platforms that charge us a certain amount every month, e.g. there are many video streaming websites online that do business this way. Once the client is hooked on your content, you can charge them every month so that they can maintain continuous access to new and existing products.
4. Launch A New Product
Launching a new product will always attract new customers for your business, but that does not mean that your existing customers won’t experience your new product. An example of such a scenario would be that a cold drink company launches a new juice or a new soda. If you are loyal to that brand of cold drink, you will be inclined to buy both the soda and the juice.
5. Introduce A Referral Program
Referral programs are very common nowadays; a lot of businesses use such programmes to expand their clientele, which generates increased sales. In a referral program, an existing customer of the business refers a new customer and gets rewarded for the referral. It is a win-win situation for both the company and its existing customers: the existing customer gets a reward while the company gets a new customer. Having a loyal customer base is a prerequisite for business success. The people that are loyal to your company will always add value to your business. Getting new customers is always good, but nothing can beat a returning client who keeps adding value to your business and, most likely, talking positively about your business to their colleagues, friends and family (i.e. free publicity).
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