Are You Getting Your Share of Sales From Previous Customers and Referrals?

Do you have previous customers? Are you asking for repeat sales or referrals?  What is the value of a previous customer for you?  Some businesses depend totally on previous customers and referrals, while others do not use this valuable resource.  The long-term value can carry forward many times, but we can see immediate value in the examples below.

For example:  Here in Scottsdale, a small company owner tracks every prospect and every customer. Last year his sales were about $2 million. Of that, 68% or $1.3 million were from previous customers and referrals. Without those previous customers and referrals, his sales would have been $700,000.

Another small business owner in the same year had $2.5 million in sales. 60% of his sales were from previous customers and referrals. In dollars that is $1.5 million. Without those previous customers and referrals, his sales would have been 1 million.

MOST GROWING BUSINESSES GET AT LEAST 60% of THEIR ANNUAL SALES FROM PREVIOUS CUSTOMERS OR REFERRALS.

If you are NOT utilizing previous customers and referrals, your sales are probably at about 40% of where they could be, assuming 60% is a “low” norm. Whether it’s 20, 30, 40 or 50%…you are missing out on major revenues.

Let’s look at scenarios. Where are your annual sales now? Where could they be if you put a referral and previous customer system in place?

  • $500,000 in annual sales perhaps could have been $1,250,000.
  • $400,000 in annual sales perhaps could have been $$1,000,000.
  • $300,000 in annual sales perhaps could have been $750,000.
  • $200,000 in annual sales perhaps could have been $500,000.
  • $100,000 in annual sales perhaps could have been $250,000.
  • $75,000 in annual sales perhaps could have been $187,500.
  • $50,000 in annual sales perhaps could have been $125,000.
  • $25,000 in annual sales perhaps could have been $62,500.

Think again about your business, no matter what size it is. If you are not tracking your current customers and leads, you are not working your previous customers and referrals as well as you could, and you are missing out on financial opportunity. There are ways to be able to easily access your previous customers for additional sales or referrals!

It’s your job to set it up. Now go work on your business.

Winners Know Their Numbers!



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