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Top 12 Strategies for Generating More Revenue from Existing Customers

5 minutes

Increasing revenue from existing customers is one of the most important goals for virtually every e-commerce site. However, to increase revenue from existing customers is easier said than done. After all, it’s not quite so simple to continuously boost sales and revenue.

In this article, we are going to discuss 12 strategies to increase revenue from existing customers.

Why Should You Focus on Your Existing Customers?

Consider these facts:

Plus, one study revealed that existing customers are five times likelier to purchase, four times to refer, and seven times more willing to try a new product.

As you can see, selling to existing customers is crucial to ensuring your business’s success. There is one other powerful reason why you should focus on your existing customers: it’s called the 80/20 rule.

The 80/20 principle (or Pareto’s principle) states that 80% of your results come from 20% of your efforts. Translated to this scenario, it means that 80% of revenue comes from 20% of your customers. This principle means that you need to focus your efforts on your existing customers, who drive the bulk of your revenue.

Review your current sales reports if you don’t quite believe the 80/20 principle. There is a high chance that more than half of your sales come from a bulk of existing customers. The remainder of your sales come from newly acquired patrons.

Increasing sales from existing customers are the best way to boost your sales and increase your revenue consistently. The question is, “How to increase sales from existing customers?” We will answer this question throughout the remainder of this article.

How to Upsell to Existing Customers

One of the best ways to generate more revenue from your existing clients is through upselling. To do this, it’s really important to understand your existing customers, their pain points, and exactly what problem you are solving for them.

With this information, you can learn what success means for your customers, and you can upsell to existing clients by pitching an idea to them, rather than an upgrade. Make sure the benefits of your product are what you are displaying front and center.

12 Strategies for Generating More Revenue from Your Existing Customers

If you’re wondering how to focus on existing customers, look no further. This section will deliver the answers you need to increase revenue from existing customers.

So, let’s get on with it!

#1: Get to know your customers

Focusing on your existing customers means really getting to know them. If you’re going to get to know your top 20%, you must truly know who they are. Here is a breakdown of the most relevant information you need to know about your top customers:

Knowing these factors will help you build products and services aimed at giving your customers exactly what they need. Most importantly, you can learn about their spending habits. In doing so, you can target your top 20% of customers.

But how can you get to know your top 20%? Ask them!

That’s right. Conducting customer surveys can be a powerful way of getting to know your customers.

Why does this example of focusing on existing customers work?

Even Facebook uses this tactic! They try to convince users to take a survey, and use a few tactics here:

1. They make you feel special (part of a “small group”)

2. They tell you it will only take a few minutes

So, the next time you’re thinking about how to focus on existing customers, use customer surveys to get the lowdown on your top 20% of customers.

#2: Focus on great post-sale service

Unfortunately, many retailers believe their job ends with a sale. That’s hardly the case, though. Focusing on existing customers goes well beyond a sale. In fact, truly focusing on your customers requires careful attention when the sale is done. This action is called post-sale service.

Think about it.

There are so many things to consider following a sale. For instance, your customers may have complaints or issues. There are issues beyond your control, such as shipping delays. While these issues are hardly your fault, your customers expect you to show up for them.

Please remember that being there at all times sets you apart from the rest. If you bail on customers as soon as the sale is done, you might be missing future sales and referrals.

Here’s a look at a great way to increase revenue from existing customers:

Why does this example of focusing on existing customers work?

Northern Brewer knows how to keep customers coming back. They offer a $5 discount following a purchase as a thank-you token. So, the last thing you want to do is disappear when a sale is made. Take the time to follow up. You’ll find that following up can help you boost that critical 20% that drives the bulk of your sales.

Grow your sales with high-performing deals.

#3: Expand your product lines and services

Brands can fall into complacency quite easily.

How so?

Brands can easily become overly reliant on their best-sellers. As a result, they tend to ignore introducing new products or services. While your best-sellers may continue to be best-sellers, you may find that your overall sales revenue may fall flat.

As such, expanding your product lines and services is a great way to focus on your existing customers. The key here is to ask your customers what they want.

Think about that for a minute. Plenty of businesses do that all the time. They leave cards or notes at the register asking customers if there are any products they would like to see. More often than not, customers request certain items. Brands that listen expand their product lines and services according to what their customers want.

Here’s a look at how you can entice customers to tell you what they want:

Why does this example of focusing on existing customers work?

In this example, The Path, a fitness magazine, incentivize readers to participate in a survey by offering free Amazon gift cards. The magazine asks readers to tell them more about products they would like to see. Participation in the survey means automatic enrollment in the sweepstakes.

It’s as simple as that, and it’s a great tactic to increase revenue from existing customers.

#4: Watch your pricing strategy

Price has always been a critical point for customers. Generally speaking, the lowest price wins. As such, you must ensure that you offer realistic pricing. At the very least, your pricing should be on par with your competitors.

Price match guarantees are a common way of keeping your loyal customers in the fold. When your customers see that you’re serious about competitive pricing, they will choose your brand even if it’s slightly more expensive than the competition. Moreover, competitive pricing is a great way to attract new customers.

You can essentially kill two birds with one stone with competitive pricing. Let’s take a look at a great example:

#5: Loyalty rewards

Loyalty rewards had to be on the list, right?

Indeed, loyalty rewards are one of the best ways to focus on your existing customers. Frequent buyer clubs, reward points, and bonus miles are all examples of how loyalty programs work. Your customers will be much more inclined to purchase if they feel they can get something useful out of it.

Here is a great example of what a loyalty reward program looks like:

Why does this example of focusing on existing customers work?

Sustainable haircare brand Dip uses a customer loyalty program to reward frequent buyers. Dip club allows customers to rack up points for every purchase, which can be used as rewards and credits for future purchases.

You must ensure your loyal customers get exclusive perks. Otherwise, what would be the point of enrolling in the program? So, don’t neglect using rewards to focus on existing customers.

#6: Offer exclusive deals

Speaking of exclusive offers, making exclusive deals available to existing customers only is a great way of focusing on them. These deals can come in promotional emails, posted on social media, or available following a purchase. The key here is to ensure that new customers don’t get access to these deals. After all, being a frequent customer must come with its perks.

A good example of this is airlines – they are constantly trying to encourage customers to join their programs so that they are eligible for exclusive deals, to increase revenue from existing customers:

#7: Make checkout quick and easy

Many great brands offer killer products and deals. However, they drop the ball at checkout. They make it hard for customers to finish their purchases.

According to the Baymard Institute, 34% of cart abandonment is due to account requirements, and 26% is due to a long checkout process. That’s roughly 60% of cart abandonment. Undoubtedly, your e-commerce site cannot afford to lose sales due to a complicated checkout process.

Offering a faster checkout for your returning customers is also a great way to increase revenue from existing customers:

#8: Offer exclusive flash sales

Flash sales have become a highly useful sales tactic in recent years. By definition, flash sales are unannounced and often last for a short period. Therefore, customers must act quickly before the deals are gone.

But there’s a way to take flash sales to a different level. Offering exclusive flash sales to loyal patrons is a great way to focus on existing customers.

Let’s take a look at how you can pull this strategy off:

#9: Leverage referrals

Referrals are a great way in which existing customers can help boost your business. In particular, rewarding existing customers for every referral can pay off in droves. Plenty of brands already reward their existing customers by providing exclusive deals and offers for every referral.

Let’s take a look at how you can focus on existing customers by leveraging referrals.

Why does this example of focusing on existing customers work?

Tentree offers a great deal when you refer a friend – your friend gets 20% off their purchase, and you get $20 off yours. This helps to spread the word, increase their network, and convert more one-off customers into loyal brand followers.

#10: Nudge former customers

What can you do about customers who’ve ordered in the past but haven’t done so in a while?

You can nudge them by offering them an exclusive deal. It’s common to have one-and-done customers. In other words, they order once and never order again. Well, you can entice them to come back by offering them a sweet deal.

Here’s a look at how you can increase revenue from existing customers by enticing them to come back.

Why does this example of focusing on existing customers work?

Tempting previous customers back with a hefty discount is a good strategy to re-engage them. You can also send emails to tell them about new features or products they are missing out on – this increases FOMO and can be enough to encourage customers to visit your site again and (hopefully) make a purchase.

#11: Bundle them up

Product bundles can be a great way of focusing on existing customers. Well, bundles are a great way to focus on all customers.

Why are product bundles so useful?

Bundles help boost sales and revenue by enticing customers to spend more. However, product bundles aren’t just about getting customers to spend more. They’re about getting customers to buy more to save more.

Why does this example of focusing on existing customers work?

PickyStory knows how to bundle! With PickyStory, you can create killer product bundles and combos. Customers can choose to purchase the products from your catalog in any number of ways. You can allow customers to make their own bundles, or you can offer curated product packages.

Curated packages take the guesswork out of building awesome deals. For instance, using the “shop the look” function allows you to create amazing looks your customers will love, and tiered discounts are a great way to incentivize your customers to spend more.

#12: Upselling and cross-selling

We’ve saved the best for last!

Upselling and cross-selling are the most powerful strategies you can use to focus on existing customers.

How so?

Upselling consists of enticing customers to purchase more of the same product. For example, product combos and bundles work very well to create killer deals.

Cross-selling works similarly to upselling. The difference lies in the products customers choose. Cross-selling means customers choose seemingly unrelated products. However, these products may be complementary or belong to a similar category. For instance, a customer buys a pair of shoes. They also buy a belt to match their ensemble.

Why does this example of focusing on existing customers work?

By showing customers how your products work together, you can encourage a larger sale. By making your products available for purchase all as a single kit, you make it easy for your customers to buy more products (with a single click).

This type of upselling, where your customers don’t even realize they are being upsold to, and actually appreciate that you are making it easier for them to find and buy your products, is a great strategy for keeping buyers coming back.

Boosting your revenue and sales is possible when you focus on existing customers. So, the next time you think about how to focus on existing customers, think about how you can use PickyStory to complement your sales strategies.

Grow your sales with high-performing deals.

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Published on September 29, 2022
Topics: Sales and Conversions

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Top 12 Strategies for Generating More Revenue from Existing Customers

Table of Contents

Why Should You Focus on Your Existing Customers?

How to Upsell to Existing Customers

12 Strategies for Generating More Revenue from Your Existing Customers

#1: Get to know your customers

#2: Focus on great post-sale service

Grow your sales with high-performing deals.

#3: Expand your product lines and services

#4: Watch your pricing strategy

#5: Loyalty rewards

#6: Offer exclusive deals

#7: Make checkout quick and easy

#8: Offer exclusive flash sales

#9: Leverage referrals

#10: Nudge former customers

#11: Bundle them up

#12: Upselling and cross-selling

Grow your sales with high-performing deals.

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