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Growing
your business through existing customers
is probably the simplest of the strategies
in the current market scenario. However
you should remember, for growth through
existing customers, one has to ensure that
there is sufficient profitable potential
to meet your business goals. It is also
important that your products or services
will remain in demand. We have two ways
to increase business from the existing customers.
1.
Can you increase your share of customer’s
expenditure on your product &/or service?
Customers prefer to have number of suppliers
valid reasons For each key customer, identify
what proportion of their businesss you currently
have? If you are not aware speak to them
& seek opinion on how you could be of
greater service. If you feel some of your
key customers may not be sharing, its perhaps
they are not quite as ‘key’ as
you thought them to be. The first need with
thyem is to improve the quality of your
relationship with them.
The
following table illustrates a number of
scenarios and suggests actions that you
might take.
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Your
share of customer purchase.
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Why
is this so?
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So
now what can you do?
|
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100%
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You
have a monopoly. The customer feels
confident with your products, solution
& capabilities.
|
Don’t
be over confident. Periodically reaffirm
the relationship & don't abuse it.
|
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75%
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As
a major supplier, your customer may
have a specific requirement for which
another supplier is being sought. The
customer may also wants to have a backup.
|
Identify
this specific requirement and consider
whether you can economically service
it. Develop customer’s confidence,
so that he doesn't hesitate to ask you
to take 100% of te available business. |
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50%
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You
are still a major supplier, but how
may other suppliers does customer have?
If its only one then its possible that
the customer perceives little difference
between you & other supplier. He
just wants to keep you under pressure.
If there are many other suppliers they
each must be meeting different requirements. |
Find
out if one supplier or several others
are servicing the customer. If your
products or services meet all your customer’s
needs, look to build a closer relationship.
If you cannot meet all needs, consider
what you would have to do to meet these
additional requirements. If you can
meet all needs, is the customer is aware
of that? If he is, you may be able to
persuade him to reduce ordering costs
by dealing with a single supplier. |
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<25%
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You
are a minor supplier because, you meet
a part of the customer’s requirement,
OR the market leader has a stronger
position OR the customer has a policy
of buying from a variety of suppliers.
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Can
you increase product or service range?
Identify your strengths with respect
to the major supplier. Is the customer
aware of yor strengths, how can it
help him to reduce costs, increae
efficiency etc.
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2.
Can you sell them anything else?
This is well known as cross selling. Are
they fully aware of all your offerings-
products & Services?
Its important that you have a good quality
of communication with customers. e.g do
you;
~ Inform your customers of your range of
products and services & timely updates
of the changes
~ Develop & maintain a good understanding
of our customer’s changing needs.
So when was the last time you had opportunity
to update your customers on your capabilities
or to check their requirements?
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