Eighty percent of your future revenue will come from 20 percent of your existing customers, according to Gartner. For businesses, that’s huge, underscoring just how important it is to focus on customer success and marketing.
If you want to grow your business, you need current customers to keep buying.
Unfortunately, getting customers to buy more has always been a challenge – that’spart of why only 20 percent of customers will make up the majority of your future revenue. If you want to meet and exceed the 20 percent benchmark, you need to understand and influence customer purchasing behavior. To help, we put together a list of six of the top reasons that your customers aren’t buying more and tips for how to change that.
Price is often one of the biggest factors in purchasing decisions. If your products require a significant investment, then it’s likely putting customers off from buying more.
Fortunately, high prices can often be offset by a strong return on investment. Clearly explain how a purchase will help your customers improve their lives or business results. Speak in terms of ROI through cost savings, time savings, increased sales, or making work easier.
You can also try to encourage a larger purchase by starting with a smaller, less expensive and less risky offer, such as a free trial. It’s easier for your customers to say yes to these smaller offers, which may be the foot in the door that you need to get them interested in more.
This is not just PR or clever marketing. Making sure your customers understand the quality of their purchase validates the higher price tag and can increase satisfaction rates.
If you’re not regularly interacting with your customers, then chances are they’ve forgotten about your company and its offers. They’re busy with their own work and personal lives. You’re out of sight, out of mind.
This is one of many reasons why companies use blogs, emails, and online communities to connect with their customers regularly. By engaging customers with helpful content and updates on your products after they make an initial purchase, you help ensure that customers think of your company first when they need to solve another problem.
Expert Tip: Be judicious about this. Filling up inboxes and online communities with offers and notices can be off-putting. Strategically engaging with interested buyers where and when they need your services will help drive quality interest and follow-up.
Even if your company is top of mind, are your offers? Customers can’t buy what they don’t know about, so make sure that customers are well-informed about your full range of products and services.
You can increase product awareness by making upsell and add-on products easy to find on your website. Once your products are clearly documented, use online activity data to identify which customers are likely to make an additional purchase. Page views (especially product page views) and support inquiries are good places to start. Both indicate customers who are interested in another product or are having a problem that could be solved by an additional purchase. When you identify upsell and cross-sell opportunities, have your sales team proactively reach out with helpful offers and product information.
Expert Tip: Make sure product and customer marketing – on your website as well as in emails and sales calls – is specific about what customers are getting and how they will benefit from the purchase. Unclear offers are another common reason why customers don’t make additional purchases.
Packages that require your customers to buy multiple products and services together can be frustrating for people who only need one or two things. These customers are often unwilling to pay for more than they need and may also wonder why they can’t mix and match products from different packages.
To appeal to these customers, provide a diverse range of packages and, if possible, a la carte options. This gives customers more control over what they’re buying, which results in a better sales experience and a higher likelihood that prospects will be satisfied with their purchase.
If customers think they’ll spend hours struggling to figure out how to use your products, they most likely won’t buy. Customers don’t have that kind of time to waste.
The first step in solving this problem is to provide training materials that customers have easy access to. We’ve seen companies do this with short educational videos posted on YouTube or in an online customer community. We’ve also seen successful companies use in-person training events in combination with written product documentation and resources in an online file library.
Whatever option you choose, be sure that your training is comprehensive and alleviates customers’ anxiety about learning a new product. You want them to feel comfortable not only with making the purchase in the first place, but also be satisfied with the product once they have it.
We would be remiss if we left this out, because the fact is that some of your customers just don’t need or want another product. They’re doing fine with what they have.
While you could try to sell to these customers, we recommend you don’t. Repeated sales pitches will only irritate them and sabotage your relationship. Instead, engage and nurture these customers with helpful content distributed in your online community or via email. All your content should be educational, helping customers get more value from the products they already have. Do this well, and you’ll keep your company top of mind and build rapport without being salesy.
Later, when your prospects’ situations change and they have new problems to solve, then you can step in with another offer – but wait until they demonstrate a need. If you’re lucky, customers will come to you directly for help in these situations. If they don’t, you can also identify customers who might need an additional product by looking at their support queries, the questions they’re asking in your community, and their online activity data. If you know you can help, then reach out with a personalized offer.
Imagine how it feels to be your customers. They’ve already made a purchase from your company and may or may not be ready to make another one. You need to respect both situations.
The best way to keep your customers satisfied and loyal is not to push sales on them. Focus on engaging customers and positioning yourself as a helpful resource that they can come to when they have questions about their current products or when future needs arise. That will set you up for additional sales from your current customers, which will ultimately help your company grow.