I am often asked,
What is the best way to develop and implement strategies to increase customer value?
Assuming you can’t change the fundamentals of what you deliver, .i.e. you can’t change gross margin, there are in fact only three strategies that you can use to impact customer value:
1. Sales: Increase per customer sales
In short, sell more to your existing customers. The most common tactics used here are the basics of cross-sell and upsell. Both of these are good approaches. However, there is a tendency for companies to over use them. This can result in a negative impact on customer relationships.
There are a wide a variety of other strategies that can be used, many ways to implement them, and little need to just focus on cross and up-sell. [Read more…]