Selling ancillary services at high margin to existing customers can help increase your revenue. Not only can you sell ancillary services at higher profit, but you create a stickier offer at a new acquisition cost of zero. Here are five ways to extend your product or service offering with your existing customers.
1. Sell them financing.
One company, a supplier to printers, started offering printing presses to round out their offering. They soon learned selling financing was more profitable than the presses themselves. It's not difficult to find banking partners who may be willing to lend to your customers while paying you a hefty commission.
2. Cross-sell with a purpose.
Online, astute e-commerce providers are intentional about offering multiple choices for every product or service offering (such as a good-better-best), specifically designed to trade clients up. They often repeat this behavior at the shopping cart with more opportunities to promote accessories.
3. Provide support or configuration.
In a recent Vistage poll of small and midsize business owners, the software application they were most likely to implement in 2018 was customer relationship management (CRM). These tools are highly configurable and representative of the types of solutions companies will provide: low-cost, cloud-enabled and easy-to-implement. Yet users will need help from integrators who can configure to suit, as opposed to selling custom development.