“Marc we want to make 2013 a huge year.” My client began the meeting.
“Sounds awesome, so what did you have in mind to get there?” I replied.
“We are going to invest a lot of money into marketing to find new clients…”
This is the exact conversation that I had with a coaching client of mine recently. By the end of the meeting however, the plan was no longer to invest in marketing to find new clients.
Let me share with you the holy grail of sales opportunities.
This client has a tremendous insurance business with 600 clients, but like many businesses, they only talk to their clients when the client needs them. Otherwise, most of the time is focused on finding new clients or keeping things generally running smoothly. Standard right?
Well, there is a huge missed opportunity here, and I’ll show you why.
In this business, the typical insurance client could actually use more insurance than they have. A business owner with an umbrella policy could also use life insurance. A home owner’s insurance policy holder could save money by bundling their auto insurance under the same carrier. You get the point.
If an average client brings in $1,000 in revenues per year to the firm and you have 600 clients, that means you have a $600K business. This would bring you a profit of, let’s say, $200K.
But, if we can get the average client to carry just $1,200K, over 600 clients, that means revenues of $720K, and profits closer to $300K.
Did you catch that?
With just a 20% increase in our average client’s purchase, we went from profits of $200K to $300K!
That is a HUGE DIFFERENCE.
So, as you can imagine, by the end of this coaching session, we realized that there was hundreds of thousands of dollars in missed sales with their current clients!
Who needs new clients when we can make more money by better serving our current ones simply by selling more to them?
The same question goes for you. When is the last time you went through your entire client list to simply call them and check in with them? Maybe even gave them something for free just for being such a loyal client? How about offered them a service that they don’t currently have?
Most businesses are obsessed with finding new clients, but that is often not where real growth is. You have a current asset that is most likely under-served–it’s called your current client list. Isn’t it time that you simply reached out to them to offer something that will improve their lives or businesses?
So what are you waiting for?