As a business owner, your largest potential gold mines are often closer than you think. It is just a matter of knowing where to look.
By thinking beyond what has worked in the past, and being open to new strategies, you will be surprised by how many untapped profit centers are within your reach.
Tap Hidden Sales Gold
Every small business owner has one major profit source at their fingertips — a customer list. Tap into this, often overlooked, gold mine using these three strategies.
Reengage lost customers.
Most customers and clients don’t stop doing business with you because they’re dissatisfied; more often than not, life gets in the way.
In my business, we created a three-step strategy for regaining them (i.e. our Customer Re-Engagement Strategy™). This tactic generated a 100 percent increase in sales in less than five days. How? We simply created an email, sent to existing customers, expressed our gratitude for past business, and expressed concern for having not heard from them in a while. We then made a time-limited, preferred customer offer and followed up on it.
Upsell and cross-sell.
If customers are offered a complementary product, service, or add-on during the time of purchase, they would happily invest in it. For example, our team helped a client recognize their potential to offer a free, one-month trial for ongoing service and support. Approximately 65 percent of customers who purchased the original product agreed to the trial, which added tens of thousands of dollars in additional profits in the subsequent months.
Some of the biggest companies in the world owe their success to joint venture partnerships. Look for opportunities to leverage the trust and goodwill you’ve created with your customers, reach out to a company that offers a complementary product, and make that product available to your customers for a share of the profits.
When I owned a real estate development company, we did something most of our other competitors were not doing — we struck deals with related businesses to provide “preferential pricing” to our clients. Pairing up with furniture suppliers, security companies, and related industries resulted in large profit margins.
Fix the Leaks
Most entrepreneurs believe the only way to grow a business is by acquiring new customers. Meanwhile, their existing customers are ignored. And the truth is: your competitors are working every day to win over the hearts of your customers.
People want to feel valued, special, and appreciated. If you’re not communicating this to current customers, they’ll find someone who does. By taking time to engage in an ongoing dialogue, offering valued information, and providing incentives to return, you’ll see a better and more consistent flow of income.
Convey Unparalleled Value
Choose advertising and lead generation opportunities that make sense for your business, and position your product or service as the obvious choice in your market. In addition, ask for references from your happiest customers. Simply asking for — and rewarding — referrals will engage current customers and instill confidence in new ones.
When it comes to increasing profit centers, the outcome is dependent upon your approach and strategic thinking. Continue to pursue new strategies, seek fresh ways to engage current customers, and capitalize on opportunities to increase the perceived value of your products.
Because when you do strike gold, everyone wins: You’ll experience reduced business costs and increased profits through more efficient operations, and your customers will get exactly the experience they need.
Charles Gaudet’s controversial marketing insight has earned him the title of “The Entrepreneur’s Marketing Champion” by both his clients and Insiders’ for his ability to help them out-compete, out-market and out-earn their competition. As the founder of PredictableProfits.com, he’s an expert at helping entrepreneurs radically improve their profits through a series of effective marketing strategies.
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