Are you focused on the right customer?
"It takes months to find a customer.....seconds to lose one". - Vince Lombardi
Attracting new customers is important. But the best way to faster cashflow is to focus on reselling to your most profitable customers, again and again.
Note: I said to focus on your most “profitable customers”. You need to know who the customers are with the most profitable transactional behavior. As an example; A customer with a high product return history would typically be less profitable.
This may or may not sound easy to you, but the fact is that it’s much easier to sell to your profitable existing customers than to attract new ones for the first time.
As long as you already have customers with whom you’ve built a good relationship, they are your fastest and easiest path to increase your revenue and grow your business profitably. If you handle it right, it's a perfect way to generate immediate revenue whenever your business needs it, and all you have to do is keep making your customers good, solid offers.
This may seem like common sense, but you would be surprised how many business owners spend all their time attracting new customers and don’t spend much time thinking about re-selling to their existing customers they worked hard to attract in the first place. However, this practice is absolutely essential to the back-end portion of your business, which is where you'll make most of your profitable sales, if you do things right.
So many small business owners focus on making that initial sale, and totally forget about the lifetime value of each customer. You need to go back to your profitable customers on a regular basis and make them new offers. It's a simple concept that so many business owners forget. If you believe in your value to your customers, and in the products and services you sell, then you’re actually hurting your customers in the long run.
Certainly, this is about serving your customers in the best way. But it’s also about your bottom line. And the fact is, the best pre-qualified prospects you'll ever have are the people on your own customer list. Smart business owners and operators understand this, and design systems to capitalize on it.
Get in the mindset that as you grow your business, you need to focus heavily on existing customers. When you launch any new offer, test it with your best customers first. Always have a set strategy in mind, and plan on what you're going to do with a brand new customer, and how you'll keep them coming back again and again. It's a simple concept that often gets overlooked, and not enough business owners or operators do it well.