Maximising sales in challenging economic times: Strategies for growing revenue with existing customers

In today’s economic climate, New Zealand businesses face challenges in maintaining and growing sales. With consumers tightening their belts and average sales prices decreasing, the question arises: how can companies maximise the value of their existing customer base and grow revenue even when spending habits shift? Addressing these issues provides valuable insights into how businesses can adapt their sales strategies and focus on maximising opportunities, helping them expand their offerings and revenue streams effectively.

Expanding product and service offerings: The key to increased sales

One of the most effective ways to maximise the potential of your existing customer base is to look at what supplementary products and services you could offer. This approach involves analysing the current products or services your customers purchase and identifying additional offerings that align with their needs. These could be products or services that others in their industry or area are already buying, thus expanding your reach into new but related categories.

For example:

• If you run a business providing software solutions, you might explore additional support services, training sessions, or complementary software tools that integrate with your main offerings
• For those in retail, expanding product lines to include complementary goods that enhance the primary products sold can increase average sale values

By expanding your range of services or products, you can diversify your revenue streams and create "stickier" customers — those who are more likely to return and engage with your business because you offer a comprehensive suite that meets multiple needs. This approach not only builds loyalty but also provides the potential for increased margins, especially if you can introduce higher-value or premium supplementary offerings.

Diversification and risk management: Strengthening your revenue base

The current economic landscape means that relying on a narrow set of products or services, especially those with lower margins, could expose your business to significant risk. Diversifying what you offer through your existing customer base can help mitigate this risk. By spreading your revenue streams across different product categories or service lines, you create a more resilient business model that is less dependent on the performance of any single product line.

This strategy allows businesses to:

• Upsell or cross-sell additional offerings, increasing the average order value
• Move customers towards higher-margin products, improving overall profitability
• Establish a more stable and predictable revenue base, particularly in uncertain economic conditions
  
  

Developing clear, actionable sales plans

While expanding product lines and diversifying services is a promising strategy, execution is key. The importance of having a clear and actionable plan cannot be overstated. It’s not enough to decide to expand; you need a structured approach that breaks down the steps necessary to achieve this growth.

A successful sales plan should include:

• Clear objectives: Define what you want to achieve. Whether it’s expanding a product category or launching a new service line, set clear targets and objectives that align with your overall business goals
• Key actionable steps: Identify the specific steps needed to reach these objectives. This could involve collecting and analysing data on existing customer preferences, training your sales team on the new offerings, or developing new marketing materials
• SMART Goals: Using the SMART (Specific, Measurable, Achievable, Relevant, and Time-bound) goal framework ensures that each step is clearly defined and trackable. For instance, if you plan to introduce a new product line, set a measurable target such as achieving a specific number of sales within a given timeframe.

By breaking down your objectives into smaller, manageable steps and assigning quantifiable targets, you create a roadmap that guides your team and ensures accountability.

Leveraging existing client relationships: The path to growth

For businesses with both product and service offerings, especially those where teams are deeply involved in the day-to-day operations (i.e: "in the weeds") it can be easy to overlook the opportunities that exist within your current client base. However, these clients are often the easiest to engage, as they already trust your brand and are familiar with your services.

The key here is to conduct a thorough review of your existing relationships and identify areas where you can expand what you’re currently offering. Consider asking:

• What additional value can I provide to my existing clients?
• Are there services or products they already need that I could offer, saving them the hassle of working with multiple suppliers?
• What feedback have I received that could inform new offerings or expansions?

From this review, put together a simple, actionable plan that focuses on driving revenue from these additional services or product lines. For example, if you currently offer maintenance services, you might introduce a premium, tiered package that provides faster response times or additional support. Alternatively, you could launch a new complementary product that makes using your existing service easier or more efficient.

Making customer stickiness a priority

Finally, businesses must focus on making their offerings indispensable to their customers. When you position yourself as a comprehensive solution provider rather than a single-product or service vendor, you create "stickiness." This means customers are more likely to stay with you long-term because your offerings are intertwined with their ongoing needs and operations.

To build stickiness:

• Develop loyalty programmes or long-term contracts that incentivise clients to commit to your services
• Invest in customer support and training to ensure clients get the most out of your products
• Regularly check in with customers, soliciting feedback and tailoring your services based on their evolving needs

By increasing the perceived value and integration of your offerings within your customers’ businesses, you build relationships that are harder to replace.

How RightWay supports New Zealand businesses to thrive

In challenging economic conditions, New Zealand businesses must maximise their existing opportunities to maintain and grow revenue. At RightWay, we support businesses in navigating these times by providing tailored advice that helps them expand their product lines and services, diversify revenue streams, and build clear, actionable sales plans. Our approach focuses on leveraging existing relationships and ensuring customer retention through effective strategies.

This period of economic uncertainty provides a chance for businesses to re-evaluate and innovate. By adopting a proactive and strategic approach, companies can maximise the value of their existing customer base and ensure sustainable growth. With RightWay's expertise in business advise and accounting, we guide Kiwi businesses in turning these strategies into measurable outcomes, helping them build resilience and achieve long-term success. 

If you’re interested in learning how RightWay might be able to help your business, get in touch with us today. 

Disclaimer: The information provided in this article is intended for general informational purposes only and may not apply to the specific details of your business. For personalised and tailored advice, we recommend reaching out to our professional team. While we strive to provide accurate and up-to-date content on our website, RightWay assumes no responsibility for any business loss or damage that may arise from relying on the information provided.