| 7 Simple Ways to Increase Cash Flow | ||
| Author: Marla Tabaka Thursday, May 29, 2014 |
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Adding inventory and bulking up your advertising budget are not the only ways to increase cash flow. Don’t forget that sometimes the best resource for increased cash flow is right at your fingertips: your existing customer base and prospect list. Here are some things you can do to attract your current customers to increase cash flow.
Adding inventory and bulking up your advertising budget are not the only ways to increase cash flow. Don’t forget that sometimes the best resource for increased cash flow is right at your fingertips: your existing customer base and prospect list.
Sure it’s important to expand your offerings, grow your market, and increase visibility. Just make sure that you’re doing everything you can to entice a greater spend from your current customers. Here’s how:
1.Upsell
An upsell is an attractive, upgraded offering that entices some of your customers to purchase a pricier product or service. For example, imagine a candle company that has a basic inventory of candles on their website. Instead of staying with the status quo, this company could offer customers something like a candle of the month membership, Even if a small percentage of the company’s customers upgraded to a membership it might double, even triple, cash flow.
Sure it’s important to expand your offerings, grow your market, and increase visibility. Just make sure that you’re doing everything you can to entice a greater spend from your current customers. Here’s how:
1.Upsell
An upsell is an attractive, upgraded offering that entices some of your customers to purchase a pricier product or service. For example, imagine a candle company that has a basic inventory of candles on their website. Instead of staying with the status quo, this company could offer customers something like a candle of the month membership, Even if a small percentage of the company’s customers upgraded to a membership it might double, even triple, cash flow.
2. Cross sell
When a client buys something from you consider what else they may want or need. For example, when a home décor business sells those beautifully crafted tiles for a master bath renovation, a cross sell opportunity would be grout, tools, or other bathroom fixtures and décor items. Is there a new line of related products that can you offer your customers at the point of purchase? If you’re selling via your website program your shopping cart to suggest companion items before they checkout. These spontaneous buys will add up fast!
3. Refer out
What other types of products and services do your clients need that you don’t provide? You can refer out on a fee-for- referral basis, or a profit split. Or, you may have an informal reciprocal relationship with a small network of business owners who help each other generate business and serve clients. This builds better relationships with both clients and peers.
4. Go back to people who said no
Too many businesses never go back to a prospect once they hear no. Did you know that 40% of the customers who make a purchase will say no at least one time before pulling out their wallet? Ask yourself what else you can offer them to get them to say yes. What more does that prospective customer need to hear? What type of upsell or incentive will encourage them to buy? Or maybe you can just keep reminding them about your business knowing that over time eventually a percentage of them will buy. Mailing lists are a great way to achieve this.
5. Work those stale leads
Most businesses have leads that somehow faded into the background. Contact these stale leads and entice them to become customers. Sales, special gift offers, and new product lines are all good reasons to go back to them and convert them into customers. You spent a lot of money and energy to get these people to raise their hands once, how can you capitalize on that now?
6. Share input from customers and prospects
Get your customers to share their ideas and feedback. Let them beta test new products or services at a reduced fee or even free. Their feedback and buzz will provide a great ROI if you use it right. Also use social media to keep your customers and prospects engaged in the development of your products or services. Let them vote, take surveys, and voice their feedback right out in the open. This will acquaint future customers with your exceptional customer service policies. Who doesn’t want to do business with a company that listens?
7. Testimonials and vocal advocate
One vocal advocate is probably equal to a dozen advertising campaigns. Don’t be afraid to ask your clients to share how your product or service benefits them. These irresistible stories sell! There are a lot of people out there who will gladly write about or shoot a video on how much they love your product. But first you have to ask. It can be as simple as asking them to upload a video to your Facebook page or to fill out a questionnaire with questions about how they enjoy and use your products. The trick is to make it easy for them and to feature your vocal advocates proudly on your website, social media pages and in promotions.