By Marc Spring, ITEX – According to the Harvard Business Review, it is three times more expensive to acquire a new client than it is to upsell an existing customer. Moreover, the chances of converting a new client to your business are five to 20 percent, compared to the 30 to 60 percent conversion rate when upselling your current customer base.
I know, dealers are thinking, “I’m already selling the full gamut of my product lines and services. What else is there to upsell?” Technologic convergence provides the answer! Are you selling Document Management? Cloud solutions? Managed IT? VoIP? Smart Office solutions? At one time, these sectors were silos and quite unrelated, but disruptive innovation has created a new market. They can now be found under one umbrella and are as good as cousins. The timid dealer is static and hoping for the best with their tried and true. The savvy dealer has dived-in to be a part of the movement and is growing business by offering new and complementary services to their current customer base.
It does take some planning. If introducing new products and services is approached systematically, the process will be efficient and effective. The Edward Lowe Foundation suggests the following steps:
- Develop the concept
- Screen against established criteria