Benefits Of Reselling To Current Customers
If you’re having a hard time differentiating your products and services or looking to close more sales, but have limited resources to reach new customers, you’re probably missing out on a huge opportunity available to your business right now.
All businesses need new customers, but your best, easiest and most predictable source of new revenue is ripe for the taking and won’t cost you an extra dime to harvest.
Reselling is simply the act of selling more of your products and services to your existing customer base, and can be as simple as setting up a loyalty card or VIP program that provides promotional incentives, priority access to new products or even reward points for future purchases. This type of customer appreciation not only drives repeat business, but generates referrals and keeps your business on top of your customer’s minds.
Remember, acquiring new customers is more difficult and expensive than servicing customers who have already bought from you in the past, and the average transaction value of repeat customers is 67% more than a new one.
You simply cannot ignore numbers like that when it comes to growing your business.
Are you focusing your time and resources on selling more to your current customers?
You need to have a plan in place to successfully resell to your current customers. Unless your products and services are head and shoulders ahead of the competition, customers are not likely to keep buying from you over and over again without some strategy on your part.
Reselling is also a top down behavior, meaning that if you make it a priority, your employees will, too. As a business owner, make reselling a top priority for your team and you’ll reap the rewards immediately and for years to come.
To help you get started, here are five great ways to build successful reselling into your small business culture.
5 Surefire Reselling Strategies
- Know Lifetime Customer Value – All the statistics in the world are meaningless if you don’t believe they are representative of your business. Perhaps your business model doesn’t lend itself well to reselling. You’ll never know until you determine your lifetime customer value. Calculate your LCV and see for yourself how much potential profit you’re missing out on by not having a strategic reselling system in place.
- Easy Upsell Slogan – “Would you like to Super Size your order?” This easy upsell slogan produces the bulk of McDonald’s profits and should inspire you to create your own upsell slogan. What can you offer in bigger or longer amounts at the point-of-sale to increase transaction values?
- Complimentary Products/Services – Another powerful strategy for reselling is adding complimentary products and services. You can even offer to sell your competitors’ stuff and vice versa. Ask your customer how you can better serve their needs and think of new ways to add more value before, during or after using the products or services they purchased from you.
- Keep In Touch Constantly – Business is ultimately about building relationships, which are hard to build if you only communicate with customers while they’re at your place of business. Now that doesn’t mean you should pester customers with a constant flow of promotional emails. Instead, segment your customer database and send helpful emails that include special offers from time to time.
- Referral Rewards – Your current customers are also your best source for new referrals, which tend to spend more money and stay with you longer than your typical customers. Even if you don’t have complimentary products and services or a reselling strategy, ask your best and most loyal customers for referrals and give them an incentive to send them to you.
In addition to being cheaper, a reselling strategy continually improves customer profitability rates over the life of a retained customer and a two percent increase in customer retention has the same effect on profits as cutting costs by ten percent.
And the cumulative effect of your reselling strategy is stronger customer relationships that earn more referrals and generate free word-of-mouth marketing that actually generates new customers and publicity for your business.