The fastest way to grow your business is by selling more to existing customers or clients. Studies by several large corporations have shown that it takes up to 10 times more effort, marketing and selling, to obtain a new customer versus selling more to existing customers. It is only logical: less barriers to entry, your knowledge of key decision makers, their knowledge of your business, ease of getting meetings, comfort to ask pointed questions, ease of getting introductions to others, ease of showing new products and services. The list of obvious advantages goes on and on.
Then why don’t more businesses create a usage or buy matrix for their existing customer base? Because it takes time, sometimes systems don’t support easy reporting, and as business owners or corporate executives, sometimes we value slaying the dragon(competition) or closing a brand new customer much more than cultivating and selling to existing customers. Even sales managers put a bigger bogie or bonus on slaying another dragon or promoting a “hunter” philosophy rather than just driving client share or what sales people call “farming”. Hunters are more valued and rightly so when growing a business where it is tough to get into new accounts or markets. However, sometimes we spend way too much time hunting and many times let our competition bite at our heels, taking the business we should get but don’t, because of our passive nature of staying at the same product or service mix sold into the account.
Take the time to create an excel sheet if that is all you have. Put along the top of the excel sheet all the products and services you can sell to your customers; a product or service per column heading. Along the right side in the first column list all your clients or customers. Put a check mark under any product or service they are currently buying from you. Now you have a roadmap for conversations to discover with your customers what else they may need. Small businesses can do this by working with an intern or getting help from office personnel. Larger corporations should set up systems to pull this from their order fulfillment reporting.
We must all keep an eye on this tremendous customer intelligence to get to the next level of sales and serve our customers to the fullest. If there is a need and we feel confident we can fulfill that need, then we should pursue it with every customer.