The main challenge for retailers and installers is to maintain or grow their sales volume in a tough market. They need to look for new ways to grow their sales.
The BBPN GlassTalk Survey identified how retailers and installers who are proactive, and marketing to their existing customers, are adding to their sales and achieving higher margins.
Retailers Need to Look for New Ways to Grow Their Market Share
Retailers are always searching for new ways to make their sales grow more than their competitors. It was found that it is easier for retailers and installers to sell to an existing customer than to win business from new customers. There are some simple and effective steps to take:
Marketing to Existing Customers is Easier than Finding New Ones
The GlassTalk Survey showed that it is over five times easier to sell to an existing, happy customer and encourage them to buy, rather than seek out a new customer who is cold to the company, because it is easier to build on trust and experience for the customer.
It Takes Longer and More Effort to get new Customers
Developing business from a new prospect means fostering a relationship before they are in a similar buying position to an existing customer. Targeting existing customers also boosts the promotion of product extensions and allows the space to feature new products.
What are Retailers Doing to Grow Sales?
This survey showed that 83% of retailers and installers use advertising to promote their sales. This is applicable to both existing and potential customers, as it crucially makes people aware of what is on offer to them.
A great amount of input and resources are used in advertising, which may reach existing customers but is much less effective and much more expensive than direct marketing to existing customers. Newsletters, offers, follow up and staying in touch with past customers will increase the likelihood that the customer will retain their existing supplier for their next requirement.
A Better way: Less Advertising – More Marketing
73% of retailers offer options and add-ons to entice people into buying from them. 63% aim to offer new products. Offering new innovations sits hand-in-hand with good advertising, each feeding off the other. Few retailers are consistent in their communications and sharing of offers and news. This is a huge missed opportunity. One retailer described how he was replacing 20-year-old windows at a past customer and was able to maintain a price premium of 10-15% over cheaper competition
Where Can Retailers and Installers Improve?
GlassTalk Survey showed that only 30% of companies were completing two key actions that would increase sales for retailers. Less than 30% build up a marketing list, which means marketing to existing contacts is less efficient. And less than 20% regularly provide news, product innovation and additional product offers to their past customers.
Your own Contact List is Your Most Qualified Marketing Tool
It is advisable for any business looking to grow their sales to build up a contact list. Marketing to existing customers and contacts increases the efficiency and return of marketing effort and expense. By avoiding buying leads, retailers are both saving money and working with a much better qualified contact list.
Your Existing Customer’s Expectation Must be met
It is critical for any business to fully meet the expectations of their existing customer. Managing customer satisfaction means managing every project. Every transaction should lead to a satisfied customer who can recommend the business as well as be open to repeat purchases. Be proactive at checking for customer feedback. Learn from any adverse feedback and take action to ensure that the next project or transaction is improved. Use superlative feedback to generate customer testimonials and case studies, which are the highest impact marketing collateral for any business.
Key Learning Points:
– Building AND USING a contact list offers any business the most qualified and effective marketing tool
– Meeting customer expectation, and delivering customer satisfaction pays of long term, its is about being proactive
This case study covers findings and insights highlighted by the GlassTalk Survey conducted by BBPN in support of the GlassTalk Industry Networking event. If you would like to learn more more about Industry Benchmarking please click below:
Copyright BBPN Ltd ©. Findings and insights can be reported with clear reference to BBPN and the GlassTalk Survey