If you’re like most companies, you focus the lion’s share of your growth budget on demand generation and customer acquisition. But the sale isn’t over just because your prospect becomes a customer. There’s still ample opportunity to grow revenue from customer expansion—nurturing your existing customer relationships, helping them see the value of expanding with your solution, and continuing to build loyalty over time. Consider these stats: Analysts estimate that 70-80 percent of the average company’s annual revenue comes from existing customers in the form of renewals and upsells. Yet, the majority of companies allot only 10-20 percent of their sales and marketing budgets toward customer expansion. In other words, the majority of sales and marketing spend goes to customer acquisition, which only amounts to 20-30 percent of your customer lifecycle. Clearly, there’s a significant, yet overlooked opportunity for businesses to tap into customer expansion as a growth engine. Anton Rius from Corporate Visions shares 3 ways to capitalize on the customer expansion opportunity, plus shares 4 additional resources for taking your customer expansion game next level in the post linked below.
Referral marketing is an unmistakably powerful way to grow your business. Its power and impact can be largely summed up with two simple statistics: 83% of consumers place trust in recommendations from friends, and 66% trust consumer opinions posted online. The simple truth is that people are much more likely to trust other people, before they trust a company. Pin this image! Unfortunately, referral marketing is largely underutilized by small businesses because of the misconception that it is both time-consuming and expensive to execute. Let’s dive in to see why that’s inaccurate and how you can quickly build a successful referral marketing campaign with a small budget.
<p>Customer referrals are are among the most sustainable and cost effective ways to grow a business. Referral marketing is the process of proactively managing and accelerating customer referrals. Referrals can be accelerated by prompting customers to share at points of delight within your product and making it very easy to share. A/B testing prompts and sharing steps can help you optimize your referral rates. An NPS (net promoter score) survey is a good way to assess the likelihood that someone is willing to share your product. While referrals are largely a function of customer delight for a product, some product categories are more likely to drive referrals than others. An example of a category that would likely have a low referral rate would be adult diapers, because people may be too embarrassed to admit to using them.</p>
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