Wednesday, August 10, 2011

Before Market Share, Get Wallet Share

Before chasing after new customers, be sure to stick out both hands and get more of the money that's already flowing into your business.

In other words, before market share, get wallet share.

Think about how long it takes to sell to a new client versus an existing client.

Example: Let's say your #1 marketing tactic is networking. To get one new client from a networking event, you have to:
  • shower and find clean clothes
  • get in the car and fight traffic
  • talk to 1-20 strangers to make a connection with one prospect
  • get the prospect's business card
  • call the prospect the next day to schedule another meeting
  • convince the prospect that you can solve their problems
  • get the check
By contrast, here's what you have to do to sell something to an existing client:
  • pick up the phone and call
Do I exaggerate? A bit.

But my point is still valid: It's easier to increase wallet share (by selling to people who know you) than to increase market share (by selling to strangers).

Here are 3 simple ways to increase your wallet share ...

1) Cross-sell
McDonald's has done this for years -- "Would you like fries with that?"

If you’re an accountant doing bookkeeping, ask clients if they need help with their taxes. If you provide dog training, ask clients if they need dog walking or poop scooping.

2) Upsell
McDonald's used to do this, too, before bad PR shut them down -- "Would you like to Super Size that?"

In your business, you can simply offer more of whatever you do. Call it an upgrade, deluxe option, executive version, whatever.

3) Special promotions
McDonald's (and other smart businesses) offer "customer-appreciation" events and sales. You should, too.

Your client-appreciation sale or closed-door event can be seasonal, tied to something in the news, or whatever. What’s nice about these promotions is that you can advertise cheaply (by writing your clients) AND they have an air of exclusivity (everyone wants to be in a secret club).

Bottom line: Wallet share is almost always easier, faster, and more profitable to maximize than market share. You have nothing to lose and more revenue to gain by trying.

You'll find more ideas like these in my Free Report, Guaranteed Marketing.

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