Identify new/niche markets to increase your market reach
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The top line on your Income Statement indicates how much your sales were in a particular period in time. That figure is important to note, as your expenses get deducted from your sales to calculate profit. By saving on expenses you will only be able to increase your profit up to a point. But by increasing your sales there is no limit to where you can grow your business!
How do you increase your sales?
Selling more to existing clients is definitely an option. But what if your existing clients just cannot buy any more? The way to go then is to find new clients.
How do you find new clients?
That you can do by finding more of the type of clients you are already selling to. Another option is to assess the total market for your product or service. The next step is then to segment your market. Use criteria that make the most sense to segment your market. Now that you have a number of segments you have to assess what it will cost to sell to each of the segments as well as the likelihood that you will be successful in selling in those segments.
In determining the cost of selling to a particular segment you will also have to determine which channel you have to use to sell to a particular segment. Will you have to set up an entirely new sales channel or will you be able to use your existing channels or channels? This will help you to choose one or more new segments.
Methods to find new clients
There are many ways to find new clients. The effectiveness will differ according to the segment you are trying to reach and the product or service you are selling. Here are a few methods you can use:
Referrals from satisfied clients
This is a very powerful way to prospect for more of the same type of client. After a successful sale you ask your client: Are you satisfied with your purchase? The answer should be yes otherwise you asked the question too early. Then you ask your client: Will you please give me the contact details of three people who you think will also be able to benefit from this product or service?
You then ask your client if you could tell the people whose contact details he has given to you, that you are satisfied with your purchase and that is why he gave you their contact details. You then contact these prospects using your first client as a referral. If you diligently follow this process you would probably have no need for any other method to attract new clients!
Join local business chambers
By joining your local business chambers you afford yourself the opportunity to meet business people whom you could either turn into new clients or reach an agreement with – an agreement from which you could mutually benefit if you sell to their clients.
Develop a website
Your website should be the showcase of your business. There you can exhibit your products and services as well as everything you want your clients to know about your business. You can use your website in online marketing campaigns as well as in other forms of marketing.
Start a newsletter
Such a newsletter can be published online or in printed form. It could even be a regular column in a neighbourhood newspaper. In this way you are able to establish yourself as an expert in your line of business.
The more people you know and the more people who know about you, the greater the possibilities of your attracting new customers. Use very opportunity to network and meet new people.
Remember to work on your business rather than in you business.
Article written by Kobus Engelbrecht : Marketing Manager, Sanlam Personal Finance
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