What always amazes us is how many companies we talk to that admit they do little to no marketing to their existing customers. Our response usually goes something like…”WHAT!!!” Lol!
Exactly 100% of them are surprised to learn that there are companies that earn as much as 90% of their annual revenues by marketing to their existing customers/clients. To clarify, these companies flip the script and instead of investing 100% of their marketing budget to generate new clients, they only invest 10% of their budget to generate new clients and 90% to cross-sell their existing clients/customers.
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Marketing to your existing customers is known as “back-end marketing and sales”. Marketing to get new customers is known as “front-end marketing and sales”. Companies that generate 90% of their revenues from back-end marketing and sales are definitely in the minority. Yet there are many companies that generate anywhere from 20% to 40% or more of their annual revenues by having robust front-end marketing and back-end marketing campaigns.
In this blog post, we’re going to cover some PROVEN back-end marketing and sales strategies that can be effectively accomplished with Artificial Intelligence.
So why would you want to invest so much more of your marketing budget targeting your existing customers/clients?
Here’s just a few reasons:
1) they are already pre qualified and fit your ICP
2) they already like know and trust you.
3) you already have their billing information and they know it and are comfortable with that.
4) they’ve already experienced your brand and like your service or product.
5) they’ll actually answer your phone calls, emails and SMS messages.
6) they’ll even call back when you leave them a voicemail message (especially if they think there’s an issue with their account)
7) they’re already familiar with your pricing structure and are comfortable with it.
8) they’re already familiar with your fulfillment process and are comfortable with it.
9) they already need your product or service line and…MOST LIKELY can you use more of it!
10) they convert at much greater percentages than new customers.
11) the net sale is much greater with them because your cost per lead is ‘0’ and your cost per appointment is virtually nothing.
12) the sales cycle with them is either INSTANT or much shorter than it is with new customers.
These are just a few of the reasons, why smart businesses have robust back-end sales and marketing campaigns targeting their existing customers. So with so many compelling reasons to sell to their existing customers, why do so many businesses NOT do it?
Because traditionally, it costs a significant amount of money, labor hours, time, infrastructure and support. Since they didn’t have these things available, they just passed on a literal gold mine collecting dust in their CRM’s and databases.
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You see where we’re going with this. Artificial Intelligence has emerged to solve all of the checklist items that we listed in the previous paragraph. It does it by being amazingly inexpensive, working 24-7-365 (with no time off), needs very little infrastructure and minimal support. For these reasons it’s IDEAL for selling a variety of products and services to your existing customer base.
In our next blog post, we’re going to share 3 proven strategies that we use, leveraging AI, to drive in more sales, referral customers and introduce new revenue streams to your business.
Click here to View the Post – 3 PROVEN AI Marketing Strategies That Can Produce New Sales & Revenues For You in Just 7 Days
Like to know more? Contact us for a 15 minute A.I. for Business Consultation & DEMO.
