Want a Proven Way to Increase Revenue and Margin?
Savvy sales managers and leaders invest heavily in growing current strategic accounts. They know how to increase revenue from existing customers because, when compared to winning new business with new customers, Bain and company found that on average:
- Retaining current customer accounts costs almost seven times less than acquiring new customer accounts.
- Current and repeat customers spend two-thirds more than new customers.
3 Sales Context Tips to Increase Revenue from Existing Customers
Outperforming B2B sales organizations ensure that their sales strategy and sales culture are defined and aligned to grow existing strategic accounts.
- Identify Your Ideal Target Client Profile
Do not waste your time trying to sell to and serve the wrong customers. Customer accounts that best fit you and your business create repeat purchases, provide referrals, and supply testimonials to help grow your top line.
If you want to grow the top line faster, start by making sure that your sales and marketing teams agree upon the target industries, geographies, size, buyer, attributes, and buying triggers where you should win the majority of the time.
- Define Your Unique Value Proposition
Your unique value proposition should clearly set you apart in the eyes of your ideal target clients. The best value propositions make compelling promises to solve what matters most to your target customers in a way that competitors cannot easily match.
You will know you are on the right path when you and your customer-facing teams can clearly articulate the unique and differentiated value that your company provides.
- Identify Any Areas of Sales Misalignment
Once your ideal target client profile and unique value proposition are agreed upon, your next sales context tip to increase revenue from existing customers is to identify and rectify any sales misalignments related to your sales culture, process, rewards, and team structure.
You will know you are on the right path when everyone agrees that your sales culture is helping, and not hurting, the team’s ability to meet sales targets.
3 Sales Account Growth Tips to Increase Revenue from Existing Customers
Once the sales strategy and culture are agreed to and aligned, top performing business sales organizations create a practical and customer-centric plan to grow current accounts that fit their ideal target client profile.
- Strategically Segment and Prioritize Your Customer Base
Not all accounts have the same potential or performance vis-à-vis your unique value proposition. Some accounts and buyers have greater opportunities for growth and strategic partnership.
Once you have prioritized your customer base in terms of performance and potential, you can develop a practical plan for raising the level of relationship, generating high value sales, improving margins, and defending the account from competitive encroachment.
You will know you are on the right path when you agree how to invest your time and resources to strike the right balance of opportunities and activities based upon who would benefit most from what you have to offer.
- Develop a Compelling Sales Growth Plan
Once you know where to spend your time and why, your next steps is to develop a sales growth plan that is used as a living document to target and focus energy on high priority existing customers. Material account growth requires a well thought-out plan that is customized for each and every account.
This growth planning process is where you can differentiate yourself as a value-added solution provider who truly understands and cares about your customer’s business, marketplace, priorities, and success.
Typical components of a client growth plan include a customer confirmed list of strategic priorities, initiatives, challenges, and opportunities where you can add meaningful value across your entire portfolio of offerings.
- Consistently Live Your Brand Promise
While you don’t want to overwhelm your customers with endless sales pitches and marketing materials, you cannot over-live or over-communicate your brand promise — the unique value and capabilities your company offers.
Provide real value and insights that align with your unique value proposition each and every time you interact with your customers. The goal is for your customer to view you as a trusted business advisor who intimately knows their business, deeply cares about their personal and professional success, and can bring new perspectives and insights to help solve their most pressing problems.
If your team does not have the skills to articulate and live your brand promise during sales meetings and sales pitches, invest in sales presentation training to build the competence and confidence required to succeed — especially when the stakes are high.
The Bottom Line
Do your homework to determine where you have the greatest opportunity to raise the stakes, discover where you have the greatest opportunity to provide real value, and then mine the gold of existing customers. Then watch your revenue and margins soar.
To learn more about how to increase revenue from existing customers, download 3 Critical Sales Warning Signs to Pay Attention to at Your Strategic Accounts