Cross-selling more products and services to the existing client base is the number one missed opportunity in the vast majority of businesses. Every year, businesses leave millions of dollars on the table. Why? Because they stopped selling once they closed a new deal.
Mark Hunter says, “You don’t close a sale, you open a relationship.” Yet in most companies, once the paperwork is signed, the client gets handed off to operations and the sales rep moves on to the next deal. The selling phase is over.
Last year at a technology conference, I heard Tiffany Bova say most sales teams are like prospectors in the Klondike looking for gold. They dedicate all of their resources to find a new customer. Then, once they get the new account, they slap high fives, ring the bell, and move on to the next deal. This would be like a prospector finding a gold mine and then moving on to find the next mine. Insanity--that happens every day in the vast majority of businesses.
Yes, sales needs to prospect for new business. Marketing needs to generate and nurture leads. But the purpose of all of this is to find gold mines that then get mined for this full value!
Your business has a gold mine. It’s your current client base. How are you doing at extracting the gold?
Sales and marketing should not stop when the first deal is signed. If anything, it should ramp up. You now have permission. You have a relationship. This relationship needs to be nurtured.
Why is this so critical? If you want to experience exponential revenue growth, you need to do more than grow net-new business. You also need to cross-sell. When you drive net-new and cross-sell growth at the same time, you begin to experience exponential revenue growth.
(If you want to learn how to set exponential growth goals, join me for a free Webclass on How To Set Revenue Growth Goals in an Uncertain Market.)
If you stop selling and marketing when the deal is signed, not only do you miss out on revenue opportunities, you also miss out on referrals. Plus, you set yourself up for lower client retention.
When you look at the marketing and sales processes that drive your Revenue Growth Engine, don’t just look at net-new. Consider what happens after the first deal is signed.
Map out your client experience. Create marketing and sales processes that ensure you to continue to add value and build the relationship. Then, you’ll begin to enjoy the exponential revenue growth that happens when you simultaneously grow your customer base and your revenue per customer.