As a business owner, your biggest potential gold mines are often closer than you think -- it’s just a matter of knowing where to look. By going beyond what’s worked in the past and being open to new strategies, you’ll be surprised by how many untapped profit centers are just within your reach.
Uncover Hidden Gold Mines
You already have one major profit source at your fingertips -- your customer list. Tap into this often overlooked gold mine by implementing the following strategies:
- Reengage lost customers. Most of your customers, clients, or patients don’t stop doing business with you because they’re dissatisfied; more often than not, life gets in the way. In my business, we created a three-step strategy for regaining them (our Customer Re-Engagement Strategy™). This tactic generated over 100 percent increase in sales in less than five days. How? We simply created an email for our client’s list of existing customers, expressed our gratitude for past business, and expressed concern for having not heard from them in a while. We then made a time-limited, preferred customer offer and followed up on that.
- Upsell and cross-sell. If customers are offered a complementary product, service, or add-on during the time of purchase, they would happily invest in it. For example, our team helped a client recognize the potential to offer a free, one-month trial for ongoing service and support. Approximately 65 percent of people who purchased the original product agreed to the trial, which added tens of thousands of dollars in additional profits in the subsequent months.
- Tag team. Some of the biggest companies in the world owe their success to joint venture partnerships. Look for opportunities to leverage the trust and goodwill you’ve created with your customers, reach out to a company that offers a complementary product, and make that product available to your customers for a share of the profits. When I owned a real estate development company, we did something most of our other competitors were not doing -- we struck deals with related businesses to provide “preferential pricing” to our clients. Pairing up with furniture suppliers, security companies, and other related industries resulted in one of the largest profit margins in the industry.
Fix the Leaks
Most entrepreneurs believe the only way to grow a business is by acquiring new customers. Meanwhile, their existing customers are being ignored.
The truth is that your competitors are working every day to win over the hearts of your customers. People want to feel valued, special, and appreciated -- if you’re not communicating this to your prospects, they’ll find someone who does. By taking time to engage in an ongoing dialogue with your prospects, offering them valued information, and providing them with incentives to return, you’ll see a better, more consistent flow of income.
Convey Your Value
Choose advertising and lead generation opportunities that make sense for your business, and position your product or service as the obvious choice in your market. In addition, ask for references from your happiest customers. Simply asking for -- and rewarding -- referrals will engage current customers and instill confidence in new ones.
When it comes to increasing profit centers, the outcome is dependent upon your approach and strategic thinking. Continue to pursue new strategies, seek fresh ways to engage current customers, and capitalize on opportunities to increase the perceived value of your products.
Because when you do strike gold, everyone wins: You’ll experience reduced business costs and increased profits through more efficient operations, and your customers will get exactly the experience they were looking for.
Charles Gaudet's controversial marketing insight has earned him the title of "The Entrepreneur's Marketing Champion" by both his clients and Insiders' for his ability to help them out-compete, out-market and out-earn their competition. As the founder of PredictableProfits.com, he's an expert at helping entrepreneurs radically improve their profits through a series of effective marketing strategies.
The Young Entrepreneur Council (YEC) is an invite-only organization comprised of the world's most promising young entrepreneurs. In partnership with Citi, the YEC recently launched #StartupLab, a free virtual mentorship program that helps millions of entrepreneurs start and grow businesses via live video chats, an expert content library and email lessons.