Retain and grow your customer base

Your customer database provides information that you can use to increase sales. For example, you could:

• offer referral rewards to current customers if they introduce new customers to your business
• ask customers for testimonials about your business, for use in sales and publicity material
• ask business customers about their plans and offer to work with them on their new projects
• find out who your most valuable groups of customers are so that you can target new customers in the same groups
• promote new, upgraded or related products to existing customers
• communicate regularly with customers through emails or newsletters

You can use information about your customers to help them stay with your business for longer and spend more over time. Customer lifetime value (CLV) estimates how much profit a customer is likely to generate, after taking into account the cost of attracting and supporting them.

You may, for example, be able to up-sell - explaining why a higher priced product would suit them better. You may also find opportunities to cross-sell complimentary products that fit their profile. For example, customers buying paint from a builders' merchant may also be in the market for small tools, nails and screws.