The best opportunities are right under your nose
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When I'm hired to help a company increase its revenues, clients come to me assuming that the answer will lie beyond existing products and markets. However, what usually happens is we find significant growth opportunities for existing products in existing markets.
There are several benefits to finding new revenue in existing products and markets:
- You only have to change or add a couple of activities; the rest is already in place. The product already exists, and the infrastructure associated with the sales and service of that product is well-established. You don't have to spend a lot of money to start getting a higher return. You can use your current salespeople, marketing folks, service people and systems to make contacts, gather information, and make sales.
- The startup investment has already been made in the existing product and market. Revenues coming at a later stage in a product's life have more profit potential.
- You know who your customers are; you can sell more to existing customers, which is cheaper than paying to acquire new customers.
- You can make significant changes "under the radar," making it much easier for people to buy your product without your competition catching on to what you are doing for weeks, months, or even years.
- Your own customers will be pleased to see that you have gotten better, and will be more likely to tell others about you.
- You can make changes immediately and start bringing in new sales.
How do you get more sales from existing products/markets? It depends on the type of product you're selling. Here are some typical situations:
Business-to-business, complex product, long sales cycle
Your marketing pieces shouldn't contain vague generalities such as "gain new efficiencies." They should be filled with bulletized, factual data points that are educational without being patronizing. You should know all the questions your customers ask and answer them all in a brief, no-nonsense way. You should be offering specific examples of how others have used and are benefiting from your product or service.
Your first sale inside an organization will be to a "champion" who believes in your product or service. You need to help that champion convince others that they should also be using that product or service. You need to give the champion incredible attention and service, and you need to equip that champion with an internal sales kit. Your salespeople (or "nurturers" that you hire) should keep in touch with the champion on a regular basis, assisting the champion as needed and arming the champion with new product data and examples of the successful use of your product.
Simple product, short sales cycle, web-based sales
Your repeat customers should have their own account. They should be able to see what they've ordered in the past - by order date or item - and easily order that item again with a click or two. They should be able to see a list of the types of products they usually buy. They should be able to populate a wish list, in addition to a shopping cart that retains their items as long as they wish.
More complex product, long sales cycle
You should be staying in touch with your customers via an educational and pleasant emailed newsletter. In each issue of the newsletter, you should ask questions that help you understand what they really want from you. When they make a purchase, you should be sending them a thank you letter and a related offer of some sort. You should have someone call a certain number of customers each month, immediately after they make a purchase, to ask them why they bought that particular product, what they thought of it, and other things they might be looking for.
All products
Do you know what compels your customers to buy one type of product over another? Do you know what their biggest challenges are? Do you know which problems they wish a company like yours would solve? Do you know what drives them crazy about your competition?
The answers to these questions will reveal opportunities you never dreamed existed, right under your nose.
"What's enchanting? A book that tells you exactly how to grow your revenue." - Guy Kawasaki, author of Enchantment: The Art of Changing Hearts, Minds, and Actions
