…your customer list is to your dealership! I am not talking about customer retention, or the recurring revenue stream from hardware sales…Instead, I am talking about a significant probability of doubling your revenue.
According to a study by Harvard Business School:
The probability of selling to an existing customer is 60–70 percent.
However, the probability of selling to a new prospect is just 5-20 percent.
If you do the math, a 5 percent increase in customer retention equates to a 25-95 percent increase in profits.
Considering these statistics, focusing your efforts on maintaining and upselling your current customer base into buying additional services from you, such as Managed IT, VoIP, disaster & recovery services, can increase your revenue anywhere from 25 to 95 percent.
If you are still skeptical, I have even better news for you! Did you know that the preferred method for B2B marketers is email marketing, and email marketing is the most cost-effective way of marketing? According to a recent report by DMA, email marketing averages $38 ROI for every dollar spent.
You heard right – and I will summarize exactly what this means for drastically increasing your revenue stream.
Focus on your customers + use email marketing = double your revenue!
Email marketing is not complicated, and it doesn’t have to be. The primary focus is having a database of email addresses and committing to a consistent email marketing schedule. These emails should be sent out to current and prospective customers regularly. Research suggests one or two emails per month is the ideal balance for B2B marketing. Sending out more emails than that may cause clients to unsubscribe.
If you are willing to implement email marketing, my experience committing to at least 3 months will increase the likelihood of effectiveness. It can be as simple as this:
- Choose a product or service you would like to upsell, such as Managed IT
- Ask your vendor for some content, like a webinar template
- Send out and email twice to your database
- First email blast should be seven days prior to the webinar date
- Second email blast one day prior to the webinar date (e.g. “Reminder”)
- Follow up with those that attended and registered via email
- Repeat this process for 3 months and evaluate where your pipeline stands
Email marketing is an effective, consistent way to gain prospective customers and significantly increase revenue each year. Business Solution Providers (BSPs) that have an email database and commit to it have tremendous success growing their business. Vendors that help their dealers with their email marketing campaigns are also capitalizing on it.
Evolved Office has worked with DocuWare for nearly eight years in managing their dealers’ email marketing campaign. In just the first half of this year, DocuWare reported nearly $391,000 in sales thanks, in part, to email marketing.
You have invested time and money in building your email database, – from paying sales reps to knocking on doors to exhibiting at local events. It’s time you get your return on your investment by leveraging your existing email lists and getting started with email marketing!
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