If you are looking to expand your business, adding new services is a great start. Adding new services to your business is one of the best ways to increase revenue, attract new customers and retain the old ones. It is known that increased customer retention can boost your profits by as much as 95 percent. In today’s market, there are hundreds of ways to grow your business ranging from the popular expansion into the online retail marketplace to the identification of new opportunities and markets. Introduction of a new service takes considerable time, planning, financial resources, and creativity and therefore, should not be a decision taken lightly. Here are a few ways that incorporating new services can impact your business and your bottom line.
Increases Customer Appeal
Complementary services such as delivery can go a long way in increasing your company’s appeal to customers. Addition of a complementary service or product increases opportunities for sales by adding value to the core item, as cited in the 1995 report Payoffs from Participation in Complementary Product Strategy. Not only does the appeal of a one-stop shop reach prospective customers, but it can also encourage current customers to spend more.
Sparks Customer Loyalty
Adding related services to your business can spark repeated purchases. As you begin to identify any potential opportunities for business growth, it is important that you also consider your existing clientele. From a financial point of view, it is much cheaper to target and retain customers than it is to acquire new ones. It is important to get pricing correctly, however. Too high prices can deter customers. For businesses that choose to pursue this, securing coverage and compensation for commercial auto assets acquired for the service makes sure that the introduction of this new service is not a drain on revenue.
From a customer relations point of view, issues such as transport and packaging are often a consideration for any business especially those with large products. By offering this to your customers, you are making yet another part of the purchasing process easier for them. Finally, in a marketing sense, it creates opportunities to promote your business. All these combine to create a positive influence on your customers and keep them coming back.
Meet Changing Market Conditions
Everyone agrees that to remain a successful and sustainable business, you need to listen to your customers. As the times and conditions of the market changes, so does the demands of customers. Things that were once considered luxury add-ons are now an essential part of the product in extension. By adding services that are being viewed as important by customers, you can help your business remain competitive and possibly stay ahead of the competition.
For any business, expansion, and growth in profitability is an objective that is desired at some point. For most businesses, their first thought when it comes to this is to increase revenue and customer appeal. Addition of new services/products is a great way to do this. Approached carefully and tactfully, it can provide your business with a plateau of opportunities to do just this through its marketing, its customers relations, its pricing and even through its product development.