Printers wanting to build their companies need a strong sales team focusing first of all on the existing customer base. When that has been secured, the company can then turn its attention on getting new customers.
There is a simple reason why it is better for sales teams to focus on existing customers than spending their energy trying to get new ones: it is cheaper. Let’s say, for example, that the company picked up a new customer through its marketing efforts but lost an existing customer who felt they were no longer receiving the attention they used to get. The company will still end up with the same number of customers. But here is the problem: the margins are lower because it will cost more to gain a new customer than to keep an existing one.
A better strategy would be to make the existing customers the first option when you have an additional product or service to sell. The strategy here is up-selling and cross-selling. And because they are an existing customer, the cost of sales will be less.
This means one thing: the key to successfully increasing sales in an existing market is to know who the customers are and their buying histories, both generally and individually.
That is why investing in a good CRM software system will give the company a competitive advantage in keeping good customers. A top notch CRM system will allow the business to maintain contact with customers and prospects. CRM software systems are great for tasks such as automated touchpoint processes and campaigns, tracking results, identifying problems and promoting engaging retention strategies. Existing customers have buying histories which gives the company insight into preferences and attitudes. It is the buying history that allows the company to customise its sales and marketing efforts.
The company should also carefully consider using different sales channels. These could include online selling, direct mail, wholesalers, retailers, distributors and outside sales.
In each case, it is important to analyse how each method affects sales volumes, profit margins and total profits. In some cases, new distribution channels will require marketing support.
Another obvious way to increase sales to existing customers is to boost marketing. It is not about quantity, it is the quality that counts. This requires careful planning, test-marketing and monitoring to maximise sales. The company should conduct market research to learn which messages speak to the target audience. It could run ads and promotions in limited locations. At the same time, it should check the results before spending the entire budget. It is a good idea to track the marketing by using coupons, electronic codes or website traffic statistics.
The company could also bring in a frequent buyers reward programme. The simplest way is to offer regular customers a straight discount on whatever they buy, such as 10 per cent. Another approach is to tie the discount to purchasing a specific dollar amount. For example, the company could offer 10 per cent off for every $300 a customer spends. But that has to be for existing customers only. They have to be treated as special.
Once the company has sold all it can to existing customers, it can start reaching out to gain more.
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