How to define and increase your customers’ wallet share?
In general, every company has a database of its customers, with varying degrees of detail. This database is a mine of information for the development of your company. In order to grow, our clients often ask us to determine the best methods to attract new customers. What if the solution to your growth objective was simply your current customers?
The wallet share is the rate of your services and products that you sell to your customer. The existing customer who has a positive experience with your company will be motivated to spend more with you. However, you have to plan ahead and have a well optimized customer experience strategy. So don’t be afraid to build on what you already have and increase the wallet share of your existing customers.
The customer journey
The first important step in planning your sales pitch to your customers is to know their buying path.
At Maïeutyk, we define your customer journey as well as your sales journey in a co-creation workshop led by one of our facilitators.
Then, you need to identify the ideal moment(s) to contact your customer in order to inform them about the next offer that might interest them. This task may seem trivial but is often forgotten or put aside due to lack of time.
Then, to counter this problem of lack of time, the optimization of the customer journey can be automated. Indeed, an automated customer journey optimization allows companies to properly communicate and seize sales opportunities with their existing customers. Therefore, by using this kind of automation, you have the chance to increase your customers’ wallet share.
The strength and beauty of a CRM (Customer Relationship Management) system lies in the fact that it allows you to automate certain tasks based on certain criteria and specific paths.
For example, let’s say you sell an air purification system and the installation is free with the purchase. After the installation of the unit at a customer’s location, your sales department usually contacts this same customer after 2 weeks to check up on them and offer a filter replacement service.
With a CRM, it would be possible to:
- Send an automated survey following installation to measure customer satisfaction.
- Send a personalized email that offers the filter replacement service at a discount because they are already a customer.
- Create a task automatically and assign it to a member of your sales team following a response from your customer.
- And so on.
In summary, many tasks such as sending emails and creating and assigning actions to be taken can be automated in a CRM.
On the other hand, a CRM tool seems to be the solution to everything but it is not. It is in fact a system that complements a well-defined customer experience strategy. A CRM is of little use without a customer experience strategy and its action plan. For more details on what customer experience is, check out our blog post from last June: The customer experience according to Maïeutyk?
Getting the information right
Getting the right information across at the right time is the foundation of any successful customer experience strategy. By juxtaposing your customer journey with your ideal sales journey, it becomes clearer where the friction is and when you need to be proactive. Calling your customer a week before they call you to change the filter can make a big difference.
If your offer consists of 4 distinct products or services that are complementary, it is to your advantage to try to sell them all to the same customer.
Note: It is important to consider the lifetime value of your customer and compare it to your acquisition cost versus your retention cost.
For each business opportunity identified in your ideal sales journey, seize it. You may be able to increase your wallet share from 25% to 50% or even 75%!
In conclusion, Maïeutyk suggests that you increase your customers’ wallet share. To do so, we suggest that you juxtapose your customer journey with your ideal sales journey in order to identify the moments of friction and opportunities related to your product or service.
Finally, we also suggest that you automate certain tasks in a CRM tool.