How do I squeeze more business out of an existing customer?
I have already built strong relationships with the client base for my yoga studio. I want to launch a health and wellness program through the studio for an additional price. Instead of looking for new customers, how do I go back to my existing customers and sell to them first?
First ensure high satisfaction with existing buisness. Leverage adjacent opportunities wherever possible to expand your value to your client. Once you have your client relationship working well, which implies you are responsive, your support is outstanding and you customize offerings to client needs, you can expand your footprint at the client location. You can get more from your existing business by selling the value of produc /service consolidation and the benefit of single point of contact for multiple needs.
Michellyn, my first advise is to not use the word "squeeze." Give the impression you are already gauging them and are now going to really puts the clamps on them! I would not like that if I was your customer.
Instead, you need to get them on your side and use them as leverage (as an unwitting sales force). Use them to tell their friends and circle of influence about your new program. Let them be your brand ambassadors. Client referral is the best way to grow your customer base and ensure you built a loyalty and broad customer base.
Using the right words even in private will help you see them in a different light and allow you to achieve the right intended results in your business instead of unintended negative outcomes.
Personally, I would not look to squeeze anything out of a client unless there is a need for it. My thought is to just offer an amazing value for the service you have to offer to as many people as it applies to vs. trying to get all the possible money out of a few clients. But again, if you have something they need, show it to them and how it can help.
Give someone on your team permission to "squeeze" you the next time you use that word in reference to anyone who does business with you. Unless your clients and suppliers are lemons or Charmin, drop that term entirely from your lexicon. Then keep in mind that nothing these days is internal and your choice of words, along with any attitude it may carry, is quite public and will return to haunt you.
This is called increasing your customer value.
You can do upsells, downsells, cross-sells of complimentary products or of your existing products/services (think about how Mc Donalds does this).
I would suggest you start a re-occurring membership of some kind (if you don't have one already). This will give you consistent income.
Also, have guest teachers (well-known) come in an do sessions. You can charge an extra fee for these special classes and give monthly members a discount because they have a monthly membership. You can also have retreats.
If want something simple to start with, I suggest putting out a newsletter and offering tips and promotions of your products or other products. If you're not collecting emails of your customers, then that would be the first to begin increasing your customer value.
You should go for vertical growth from the same customers, see the possibility of expansion in the organization. Ask for referrals and also look for some product development or sourcing at your need that will match your customers need.
Q? Using this analogy, during WW1, how do you get a soldier climb out of the safety of a trench and walk slowly towards the enemy?...They used the power of incentive!
Glad to hear that you have a successful yoga studio, but I doubt if you are going to get any if your clients interested in new offerings if you believe you have to "squeeze" the business out of them. Putting negativity aside think about why you are doing this in the first place.
In looking at your expansion, before you add more services, have you penetrated your market to the point that there are no more new customers to be had? If not, why not? If you are comfortable with the existing customer base from a financial viewpoint, what is the benefit to you to add a new service offering? For example, why not open another yoga studio to gain more customers in your current market making you the number one yoga studio in your area. My experiences have been in growing companies deep before expanding to be wide. The issue with wide is that you have expertise in many areas instead of just one. Not everyone wants health and wellness if all they want is an excellent yoga studio. Expansion is also most likely to erode your customer base or you may actually lose customers. Can you afford this to happen?
Don't be discouraged if your existing clients aren't falling head over heels for your new offerings; they just may not be the right market for you. This is certainly where you can spend the time and money on the ideas listed here. Another way is to offer a referral program for existing customers if they introduce a customer to your existing business or the new one you are looking to expand into.
There are good ideas here on voucher programs, using surveys to determine which activities your clients are really interested in (BTW you might discover that what you think they want is not what they really want!), special pricing for joining, etc. The easiest though is to just go and sell this to your existing clients!
I'm sorry but your question has made me too negative to honestly answer your question. I'm sure that was not your original intention but I just cannot think about relationship selling solutions now.
I think you can do that by send letters to all your client mentioning that additional items will be added to your business , you can provide them with speciall concession , you may ask them to bring new clients with more discount , this is the perfect way to encourage them to bring new clients too , make them understand that you care for them .they will difinitely be happy .
I'd suggest surveying your clients and finding out what they need or want from your business. then build a service around that expressed need.
Interesting choice of words "squeeze". There is some great advice listed here in terms of understanding whats working, and what might bring additional value.
I would encourage you to look at your attitude around this. Clients and customers sense when we are, "squeezing, killing, conquering". How do you think they will respond to that intent versus one of "How can be of more service to them".
Best of luck
Go to your best advocate for each client, make sure they understand the health and wellness program you offer and how it complements the Yoga studio (i.e. adds additional value). You may offer them a discount since they already subscribed to your Yoga classes. Give them a discount in exchange for using their names for further promotion. Provide more value rather than squeeze (not a very customer-centric term). Just think about how much you would like to be squeezed for more money?
Driving additional sales revenue through your existing customer base is the most effective way to grow your business. You have already built trust with them and they know what to expect from you.
That said, just becasue you offer it, does not always mean they will buy it from you. Ask yourself these questions first:
1. Is this offering a logical extension of my main business?
2. Will my existing customers see me as an expert in this addition like they viewed me for the initial reason they came to me?
3. Do they have any interest in what I am offering now?
Regardless of how you acquired them initially, you must earn their business for this new offering as well. Thinking of getting them to buy more in terms of 'squeezing' sales out of them is an unproductive mindset to work with. Try this:
1. Ask them if they currently purchase this kind of service and why?
2. Find out what they like and dislike about the options they have now.
3. Introduce them to your offering and let them know why your's fills the gap of unmet needs in the marketplace.
4. Make they a trial offer so they can test your version.
5. Give them a 'loyal customer' package.
6. Give them an incentive to spread the word or refer others who might like your new service.
Pressure them to sign up. You could lose their primary patronage.
Manipulate them into buying your service.
Make them feel like unappreciated clients if they don't go along.
Treat them any different if they stick with just the service they started with.
If your new offering is truly valuable and your customers see a compelling reason for trying it, they will. If not, find out why and work on improving what you offer.
I like Starbucks coffee but I wasn't convinced of their sandwich offering. I didn't see Starbucks as more than a great place to buy coffee. I initially went to Staples for office supplies. Now I buy computer hardware from them and have marketing material designed and printed by them. They upgraded me because I felt they could transfer my trust in other things they provided.
The same will be true for you.
One recommendation is to work on converting your current clients into raving fans. Come up with ideas that have your current clients bringing in new clients. Consider offering 2 for 1 or introductory pricing on your new programs for clients that bring in new customers, etc. if you already have a strong relationship with y our client base ...Instead of trying to squeeze more business out of them; explore how they can bring more business to you by giving them additional incentives.
Turn them into raving fans with outstanding service and they will be happy to bring others to you.
Others have commented about "squeezing."
To me, getting more business is only partly about products and services, needs, etc. The key element is continuing to build the relationships with your existing customers. Do they know you care about them? Do they think you have their back? Do you take time to understand their issues, and only then discuss potential solutions? Are your conversations about them or you?
In any service business the goal is for customers to see you as transcendent, not merely transactional.
Start by not thinking of it as squeezing business from them.
If you present a service some want or need, some will buy. As long as you are following that principle, you're just offering them something else that were hoping to find.
Pardon my saying this. First, you may want to rephrase your questsion. You may want to ask yourself, "how do I provide more VALUE to my existing customers?" Focus on value and delighting the customers and revenue will follow. You may want to read book titled "FREE - The future of a radical price" by Chris Anderson.
Kindly describe your "health and wellness" program in more detail to help you generate more ideas.
Hi Michellyn, when it comes to product selling you need to know the exact target market of the product. Generally it is not considered to be a good idea to burden existing customers with additional expectations for the new product.
Analyze your current customer base the age group, working pattern, income background, vicinity or area background .Relate these things with your new product proposal.Keeping in mind that generally people take out the time and money out of their busy schedule and limited resources for only one engagement at a time in a day in a fitness center. Additional expectations can harm your relationships also.
However, if you have strong relationship and you feel that you can leverage it but after analyzing your customer profile base you can do so.But in this case i would suggest launching of product should not be only directed to them , you can always take feedback from your existing customers on how many of them will be interested in joining but identify the specific target market which you feel will be attracted to your new idea and sell to that market to its maximum potential.Why should you restrict yourself.
Your current strength before launching a product is that you have a customer base and you have good relationship with them .Instead of burdening them with the product use them for guidance and feedback for your new idea. This way you will draw loyalty ,customer service , customer retention and softly you will convey your product which may or may not motivate them to join the new program.But at least instead of harming your relationship it will add to your business.
Every product in this world has its own target market which you should know in entirety for your new product. You can also engage external market researcher or expert to do this job for you.
For the time being you can float a soft survey as a customer feedback survey on your existing services and also asking in indirect few questions whether they will be interested in the new development .Also ask questions around the product on general feedback . This will give you ample idea how to go about leveraging your existing client base.
To get business, you have to ask for it. Don't ask...Don't get! Explain to your current clients you want to offer more services for them. Ask them what they would find most beneficial. And have a flyer ready to give them of the extra services you are thinking of adding. Don't forget to reach out through social media too.