Would you think that 80% of your sales presumably come from 20% of your customers? the truth is that this is often undoubtedly the case for the bulk of companies, small and enormous. this suggests that quite likely, your next sale will come from someone who has already done business with you.
Back in 1906, Pareto learned that 80% of Italy’s wealth was held by only 20% of the people. Then at some point, after examining his garden, he also realized that 20% of his pea pods accounted for 80% of his pea crop yield that year. Was there a lesson here? This got him thinking, and shortly after, the “Pareto Principle” was established. With equivalent preciseness, this same principle is often applied to business. you'll realize it because of the 80/20 rule.
This little-known principle sheds tons of understanding on how businesses should be run. instead of putting all of your energy into the new business, you'd be knowing to spend an inexpensive amount of some time following up and servicing people that have already given you business. After all, you’ve already removed the primary barrier. Upselling current customers should come naturally? as long as you're proactive in following up and providing top-notch service.
What does this mean to you?
Imagine, about one-fifth of your customer base is simply expecting you to supply them with something new. So if you’re not following up together with your existing customers, you’re actually passing up 80% of your potential business. Of course, if you originally provided a poor experience, this might not be the case, except for businesses that operate a principle of integrity, this could be a natural course.
Think of it. You’ve probably already invested heavily in getting that first piece of business? planning, advertising, promotional activity. Now it’s time to develop their “lifetime value.” There’s a lot of belongings you can do to point out appreciation:
Christmas and birthdays: an excellent time to send over a thoughtful gift or Email.
Attend events: if your customer holds annual charity events or some kind of meeting, confirm you're taking the time to attend and show your support.
Renewals: an excellent time to touch base with a notice of renewal that expresses your heartfelt appreciation for his or her business.
Incentives: put your money where your mouth is and show your customers’ value. a present incentive or discount can go an extended way in terms of future revenues.
Touch base: call your customers every so often to ascertain how they're doing, how the merchandise/service you sold them is performing, and inquire or listen for the other needs. Use newsletter subscriptions to stay you top-of-mind.
Great service: the single-best thanks to ensuring customers will remain loyal. Go above and beyond. You’ll be surprised at what proportion of an advocate that customer can end up to be in terms of referrals.
Make sure you offer them more products/services which will meet real needs. If they liked you and therefore the product they bought, they’ll buy from you again. The important thing is to always endeavor to satisfy the requirements of your existing and future customers.
The Possibilities are Endless!
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