A common concern among small-business owners is how to increase their market. Often, they try to do this by finding new customers.

The first step, an often overlooked way to increase sales, is to focus on getting more sales from existing customers, according to Glenn Muske, North Dakota State University Extension Service rural and agribusiness enterprise development specialist.

“On average, it will cost from $20 to $50 to get a new customer,” he says. “Yet it only costs from $1 to $5 to expand sales to an existing customer.”

Not only does increasing sales to current customers save money, but existing customers tend to spend more money than new customers.

“So whether you are encouraging your staff or doing it yourself, focusing on your existing customers can provide good returns for a low-cost investment,” Muske says.

Focusing on the existing customer starts with thinking not only about today’s sale but the purchases a customer will make long term. A customer buying from a business represents income not just today but for many years.

An easy way to increase sales to existing customers is to offer complementary products and services. For instance, if you sell luggage, add a rack of luggage tags.

“Often, these simple additional items offer a good rate of return,” says Muske. “And these items move easily. The only requirement is that you and your staff need to make the customer aware that you carry them.”

Another simple tool for increasing sales to existing customers is to remain in touch. The contact with customers can be about a new product or services they might like. These contacts also are a good way for businesses to thank customers for their business.

“Of course, nothing can beat a good customer referral system where existing customers help you attract other customers,” Muske says. “Make sure that you acknowledge or even offer an incentive for the referral.”

Businesses selling to other businesses also should think about how they can help the other businesses increase their sales. One way is for businesses to work together to offer customers a combination of their products and services.

“No matter what the economic climate is, getting more sales from existing customers makes good business sense, so take time to plan how this strategy can work in your business,” Muske advises.

For more suggestions, contact Muske at (701) 328-9718 or glenn.muske@ndsu.edu.

NDSU Agriculture Communication