I think you’re going to find this really useful. Today, I explain why you really should offer a new service or product to your existing customers. PLUS, I give you some proven advice on how to get started.
If you don’t already know, here’s why you should think seriously about developing a new service.
The quickest, most profitable way to generate additional income for your business, is to sell new services to your existing customers. It’s a lot faster and more profitable, than finding new customers for your existing services.
Faster and more profitable — why?
Because your customers already know you. They already trust you. They have an existing trading relationship with you. And marketing to existing customers costs a fraction as much, making it more profitable, too.
Whenever I share this idea with a new client, they immediately see the potential. After all, these cookies were already smart enough to hire me. They then follow it up with a great question.
“How do we get started creating this new service, Jim”?
Obviously, when I work with one of my clients on this, I work with them to develop exactly what they want and need. However, I thought I’d share some general pointers that you may find useful, if you’d like to have a do-it-yourself shot at it.
Go premium
A useful place to start, is to take a look at one of your existing products or services, and think of ways to add valuable, premium features to it. Something that significantly increases its value to your customers. In every economy, there is a very eager marketplace of people who actively seek out premium products and services. It’s why we have luxury restaurants, clothing brands, hotels, watches, cars, etc.
There’s an additional benefit from going premium. In my experience, those who purchase premium products and services are often far, far easier to work with than any other group.
Express yourself
Alternatively, you could look for opportunities to create an express version of one of your current services, for those who value speed and will happily pay for a new, faster service.
Express services always work best, when you offer a guaranteed deadline. It’s not enough to say you’ll do (whatever) faster. You need to tell them that it will be done/ready by 9am, or in 24-hours, etc.
An all new offering
If you want to introduce an all new product or service, a useful place to start is to look for things that will compliment what you already provide. For example, if customers already use (x) they’ll have a potential need for (y).
Accountants discovered this decades ago. They figured out that their clients would value new, complimentary services from them. So they started offering profit improvement planning, document storage and the development of HR policies for their client’s businesses, etc.
Do some research and if it stacks up, dive in and give it a shot.
Sustainable
You might also want to consider the huge market for environmentally friendly products. Sustainability has become a major factor in purchasing decisions. In some cases, sustainability is a requirement before companies can purchase from a provider.
Developing a product that’s kind to the environment, or finding a more sustainable way to provide your products, makes sense on multiple levels.
Give it a try
I hope those examples offer some food for thought.
Important: Creating a new product or service is especially useful, if you find yourself with a cashflow problem. As you know, it takes time to market your existing services to prospects who don’t know you, then go through the various processes/meetings/testimonials/follow-up, etc. However, the speed with which the type of ideas above can be put into place, offered to clients, sold and invoiced is rapid.
I hope you’re inspired to examine the huge potential here. Because as I see over and over again with clients, when you get it right, the results can be absolutely transformational.
Photo by Alex Padurariu