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Home | Blog | Increase Revenue via Upselling to Existing Customer Base

Increase Revenue via Upselling to Existing Customer Base

By Magellan Solutions

Updated on June 3, 2024

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Most businesses spend most of their resources on getting new customers, and they tend to ignore their most prized asset: their existing customer base or network.

“It is cheaper to retain than acquire a customer,” says 70% of respondents from Econsultancy/Responsys Cross-Channel Marketing Report 2013

In the same report, 49% of the respondents recognized that they achieved better ROI by investing in relationships over acquisition marketing. However, the shocking part of the report is that a remarkable number of these businesses still do not make much effort to retain customers. Some don’t make any effort to retain customers. The report states that 30% of the companies say they are “very committed” to relationship marketing, and 22% conduct no relationship marketing.

Companies that were not “very committed” to customer retention or relationship marketing were surveyed regarding why they tended to be that way. The most common barrier was lack of resources, making up 22% of the respondents’ answers. It is followed by a lack of clearly defined strategy, which is 19%, and then technology limitations at 13%.

With the lack of resources, strategies, and technology for customer retention, how do companies manage relationships with their existing customer base?

Improve customer service—increase in revenue.

It is essential to realize that one of the effective ways to increase revenue from existing customers is to improve the customer service that a company offers. Sometimes, all it takes is one “wow” customer care experience to dramatically increase sales (through returning customers), multiply profits, and cement the company’s reputation as an excellent, customer-focused business.

We humans love to share our experiences—positive or otherwise. With social media technology being a potent tool for connecting with and to people, businesses ought to remember that customers can quickly share the customer support experience they deliver. We’ve heard real-life customer service stories ranging from “amazing” to “unbelievably horrible” that went viral online. One experience shared by an existing customer can mean success or disaster for a business in just a few clicks.

Existing customers will gladly serve as loyal brand ambassadors of the business if they are truly impressed with their customer care experience. The reverse is just as valid.

Be unique. Consider being a guerrilla.

For your existing customers to consistently support your business, they must be delighted. That leaves you with constantly delivering positive, unique customer support experiences. Companies that outsource sales, particularly upselling, get to keep their customers happy while enjoying a healthy margin. This is where the concept of guerrilla marketing comes in. Defined as a non-traditional marketing method involving a minimal budget, a well-thought-of and adequately executed guerrilla marketing campaign leaves a fun and memorable impression of your brand to your customers while delivering high ROI for your business. Here are some ways you could stand out and be different from the rest:


1. Personalize it

Use your customer’s name in all correspondence with them – face-to-face interaction, emails, or social media communication. Sending a thank you note to customers after their purchase shows that you appreciate their business and care about them. Aside from these, other ways exist to personalize your products and services. It’s up to you to utilize the endless creative forms of doing these.


2. Loyalty rewarded. Unexpectedly

Numerous businesses currently use loyalty rewards and incentive programs. However, you can take it a step further by pleasantly surprising your loyal customers with discount offers on their birthdays or during the holiday season. One way to show gratitude towards returning customers is by giving them a small token of appreciation during their next purchase. This gesture can help to strengthen the relationship and make them feel valued.


3. Constant communication

Weeks have passed since their purchase, so take the time to ask them how they are doing using the communication channel they feel most comfortable with. This tells them you genuinely care about them as persons and not just as customers who helped your business grow.

The kind of customer support you provide can affect how much revenue your business could derive from your existing customers. By upgrading your customer service and delivering uniquely memorable customer care experiences, your existing customer base will multiply, and your business will grow overall.


Need help upgrading your customer care? You’ve come to the right place. Contact us to learn about our customer support services today.


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