Oftentimes, brands tend to hyper-focus on acquiring new business from the outside rather than acquiring new business from retaining and upselling current customers. While new clients are great for a business’s bottom line and portfolio, there’s only a 5-20% probability of selling to a new client or customer, according to research from Invesp. On the flip side of that coin, upselling a current client or customer has a substantially greater probability of 60-70%. This is important for businesses to recognize, because failing to do so means more budget, resources, time and effort are focused on finding and converting new clients at a substantially lower close rate.
Now, while a business obviously wants and needs new clients, it’s important that more effort is put into retaining and upselling current clients. It’s not easy to up and change decades of the same sales business mentality, but there are ways that businesses can make adjustments to their marketing efforts, as well as shift to focus more on current client relationships to acquire more new businesses.
Show Them Value
Digital marketing is great in that, with appropriate tracking, a business can see the value of its marketing efforts, including ROI, interactions, volume, and generally what value its dollars are bringing. With the right tracking and the right outlook, it can be productive to show a client value in a potential opportunity. For example, from an agency standpoint, Kyle Brigham, Director of Client Relations at Marcel Digital told me, “If paid search is driving the right converting customers and it is currently limited by budget, showing an increase of X for a projected result of Y can be a great way to show the value of an increase. Sometimes an agency will find that the data gives it a complete no-brainer choice to present to the client in that it would be insane not to move forward with an opportunity.”
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