Tip: grow your business during renewal sales

Renewal sales are the ideal time to encourage your customers to try new products.

Your existing customers are awesome –  they trust you and have already bought your products.  You’re really lucky if you sell products that allow for recurring or renewal sales; you get to stay in touch with your customers.  Each time they renew is a chance you have to remind them that you value their business and that you are helping to meet their needs.

Consider this – Barrington Research reports that for Salesforce.com, “roughly 60% of new business was driven by existing customers in 1H/FY13.” (Source: Barrington Research Report “Godfather of SaaS is Continuing to Innovate”, October 31, 2012).

At salesforce.com, nearly two-thirds of revenue growth comes from selling more to existing customers.  Salesforce.com knows that existing customer relationships are valuable, and they earn billions because of it.

Here’s one way you can put that into practice for your business.  When you contact your customers for renewals, let them know that you are thinking of them.  Don’t simply send them a quote or invoice for what they bought last year – you’ll be missing out on a prime opportunity.

Instead, along with the renewal purchases from last year, suggest other products or upgrades they might find helpful.  They already understand your products, have a relationship with you, and are now focused on your renewal notice.  This is the ideal time to bring them useful information on new products and services.

You’ll have the most success by tailoring your recommendations to your customers individually.  Take the time to sort through your loyal customers and put together their sales history – the lists of everything they have purchased in the past.

With your customer’s individual sales history in mind, come up with some new items or upgrades you think they’ll want.  Then suggest that they try these items when you send them their renewal quotes.  Once you’ve done this a few times, you’ll notice the patterns and will be more easily able to suggest new products based on your customer’s purchase history.

And try this – sweeten the deal by offering a free trial period or a money back guarantee for the new items.  This will really make it easy for your customers try something new.

Don’t miss out on growing your business during renewals and recurring sales to existing customers.  You’re already contacting them and they’re already planning to buy from you, so let them know what else you think they need.  You grow your business and they get something they want.  It’s a win-win!

Read more about best practices and renewals:

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