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Home  | How we help clients |  Executive Education  | Learning Centre 
June 27 2019.
For a bright future look at the history.

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.

Your share of customer purchase.
Why is this so?
So now what can you do?
100%
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.
75%
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.
50%
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.
<25%
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.

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.

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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With experience of two decades, read "How we help our clients" to improve business.

 

 

 


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