As a tradesperson, it's easy to get sucked into the trap of wanting to find as many new customers as possible in order to grow your business.
However, your existing customer base is one of your best assets.
While increasing your customer base is a desirable business goal, it shouldn't come at the expense of your present clients.
Here are four reasons why focusing on your existing customers can pay off. Of course, they're predicated on positive customer sentiment. If not, you'll need to work on improving your offering in interior or exterior renovations first.
1. They know your business
Your existing clients already understand what you do – whether you're an expert in hanging wallpaper, painting properties or renovating homes.
They know your prices, competitive advantages relative to other tradespeople in the area, your hours and work ethic.
Having clients who know your business is incredibly beneficial. They don't need to make an effort to find out information about you like they would with a tradesperson they haven't used before, making your services an easier option to contract.
2. They can talk about your business
In the building and interior design world, word of mouth recommendations from existing clients to potential ones are invaluable.
While it's important to market your activities – whether in directories or on social media – there is only so much this can achieve.
Genuine feedback from existing clients about how great your service is can boost the impression of your business.
Encourage customers to mention your skills to their friends, workmates and family.
Your existing client base can be extended vastly by tapping into these valuable contacts. However, be warned – if you're not acting in a timely fashion or are doing a shoddy job, expect clients to tell their friends about this.
Word of mouth doesn't discriminate, so it's important to focus on providing a great service so the feedback is equally positive.
3. You can up-sell to them
When existing clients tell their family and friends of a great local builder or painter, these potential new clients already have a valuable nugget of information about you.
When it comes to up-selling to your existing customers, they have more than just a word of mouth recommendation to go on.
If you do a great renovation or painting job for them, they'll see it every day when they return home from work.
This visual reminder of your services makes this segment easy to up-sell to as they consider other ways to add value to their home and make it more comfortable to live in.
When a client next calls you up requiring a job to be done, you're in a great position to up-sell your services, whether it's adding more detail to a paint job or extending insulation to other areas of the home.
Given that clients are already going to spend a certain amount, they may be willing to increase their marginal costs to have you complete additional tasks, rather than contracting another tradesperson to do so.
4. You can grow loyalty
While any client – existing or potential – will appreciate discounts, it may be more valuable to grow loyalty among your existing clients.
Rather than offering a one-time discount to any client, who may just be price-sensitive, work on retaining your existing client base if you're going to foray into service incentives.
If there's competition in your area, having loyal customers is incredibly important. Furthermore, existing clients may feel under-valued if you only offer incentives to new customers, when they have been spending into the hundreds or thousands with you.
Offer the right incentives and existing customers can become incredibly loyal. One way to do this is by starting a referral system, where you provide them with a nominal discount on future services (eg five or 10 per cent) every time someone they refer contracts you for a job.
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