Better Business
How to boost your profit
Every company that I speak to wants the same thing – more business, or more profitable business to be precise. So I thought I’d share seven tips on how to increase your business – profitably.
These tips are not mutually exclusive and there is no magic formula with these tips, just common sense. Yet when the days get too busy, we can’t always see the wood for the trees and such common sense approaches go by the wayside.
1. Unleash your secret sales force
Every company has a secret sales team that often goes under-utilised. In fact, it is so secret you may not be aware of it. This sales force is, in fact, your clients.
This is because word of mouth remains the most effective form of promotion. However, word of mouth does not happen by magic. Firstly satisfying the needs of your clients is now no longer enough; you need to delight them. This means that you have to exceed their expectations by continually finding ways to add value. If you do this, then you’ll have an advocate who will tell others about your services. If you meet expectations, or simply satisfy, then your client may be loyal, but won’t necessarily tell others.
Secondly, you need to keep in contact with existing clients. Otherwise, it becomes a case of out of sight and out of mind. So unleash your secret sales force by finding ways to add more value to the sales process and communicate post-sale.
2. Discover the hidden client
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Okay, so your clients can be your sales force. In the same vein, a key client of yours is your employees. This is because it is them who will delight your clients, so treat them well, like you would a client. So just think differently; employees are like a client and clients are your sales force.
3. Win back lost clients
Research shows that a business is twice as likely to successfully sell to a lost client as to a new prospect. Yet for many firms, winning back lost customers is frequently the most overlooked source of incremental revenue. This is because they think that a lost client equals lost cause. But having worked hard to win them in the first place, it is fruitless to let them go so easily. So have a strategy for acquisition, retention AND WIN BACK. If you do win back lost clients, then they will become a stronger and more loyal client. To begin this process, you must first make contact with them and understand why they left you.
4. Embrace new clients
Too many client use a company just once. When you have spent lots of time, money and effort in winning new customers, this is such a waste. This is a waste that can be avoided if you simply do a follow up piece of research, after their first experience of dealing with you. If there were any issues, they can be addressed immediately.
So when you think about client retention, make sure you include brand new customers in your thinking. Treat them differently and make sure they form a habit of using you again.
5. Follow up leads
It amazes me how many leads go cold, just because a company did not get around to following up promptly. This can be an enquiry over the phone, a referral, or someone you met at an event. Apparently, a hot lead begins to cool down after just one hour. So strike whilst the iron is hot; have a process for dealing with enquiries promptly and efficiently.
6. Deliver a superior service
Obvious huh? But think about what you really mean by service. Where do you actually serve your clients? The more you serve, the easier it is to sell. And you will be serving at many touch points, from your website, through to how the telephone is answered, to returning calls, to keeping the client up-to-date and through to post-sale communication. So take a step back and look at all stages of where your serve your clients and make enhancements.
7. Keep on selling
One of the biggest mistakes companies make is that they stop proactively marketing their business. Sometimes this is because sales are going well, so they think it is not required. Other times it’s because things are not going so well, so cut backs are required. Either way, these are costly errors because lost sales and increased costs is the result.
Instead, keep your marketing constant and consistent. Every day you should be doing something, even if it’s just a change to your website or contacting a lost client. So keep on marketing; keep on selling and start with existing clients, then lost clients, followed by new clients. Too often the focus is exclusively on new clients.
Jeff Knight is managing director of Tonic Marketing