The main avenue for profits for many small to medium-sized businesses is by selling a core product to a target customer base. Well-to-do businesses tend to expand revenue streams beyond this as well. However, there’s a major misconception that companies need to expand the existing customer base to make more money. In fact, there are plenty of ways to increase revenue with the existing customer base, even without introducing proprietary products. Trying to attract a new target audience for products is inherently risky. The business could end up pulling resources away from one audience towards another, resulting losing old customers and gaining only a few new ones. Here is a list of highly effective ways to earn more money with the customer base your company already has:
Offer Related Products
Companies can offer new products to existing customers that are related to what they already like from the company. It’s like a video game pairing up with a console manufacturer to push a product. But the relationship between the two products doesn’t have to be as obvious for customers to love it. Consider, for example, the Facebook acquisition of Instagram, which tapped into a customer base that was already using both products. Likewise, bundle new products that the customer base can use with the existing products your business offers. It’s will expand revenue without necessarily requiring new marketing money to expand the customer base.
Launch a Multi-Product Offer
Companies can offer product tie-ins, but if this is not possible, businesses can also consider brand extensions. This refers to offering new products under a brand that may not be directly related to the existing product line. For example, IT companies that offer services like data management can also offer Telstra wholesale telecom products. Products like wholesale telecom can be a quite lucrative brand extension product. This is mainly because of third-party service providers that make the product available via easy-to-use platforms. Likewise, find ways to extend your brand beyond familiar territory with the existing customer base to increase profits.
Start a Rewards Program
Rewards programs, better known as loyalty programs, drive purchases among loyal customers. Rather than targeting new customers, offer discounts and deals to existing customers. This improves loyalty and motivates customers to make continued purchases as return buyers. Loyalty programs continue to exist even in the online shopping age because they have high success rates. Rewards programs work even with B2B customers. If implemented successfully, the loyalty programs could become a revenue stream in and of itself, like the mile high club for certain airlines. To truly succeed with a loyalty program, offer customers frequent rewards that they can obtain easily. The reward should be of substantial value compared to regular buying. The aim is to provide customers a strong incentive to buy from your brand.
Market research has shown that brands focus the majority of the promotional budget on attracting new customers, but not the existing ones. Exiting customers nearly all the time make up the vast majority of a company’s revenue. Therefore, a substantial amount of marketing budget should go towards compelling these customers to make new purchases. Up the marketing game, so to speak, to get existing customers to buy more.