Excellent service is the key to turning new customers into valuable existing customers. An excellently positioned after-sales department ensures that it is not just a one-off purchase, but that existing customers are built up with steady sales.
The first machine is sold by Sales, the second by Service! Everyone has heard this saying Service Manager you've heard it countless times. And it is not only in industry that after-sales measures are of great importance in order to increase the repurchase rate. After-sales is also becoming increasingly important in other sectors. However, the importance of service is still lagging behind in many companies.
With outstanding services, you have one of the most effective ways of retaining customers in the long term and turning a one-time customer into a regular customer with a steady stream of income. You should not let this opportunity pass you by.
Please also note our 50 tips for success in after-saleswhich you can use to build up an efficient service business. Especially if the topic of after-sales does not yet play a prominent role in your organization.
Why are existing customers so valuable?
It is a truism that it is far easier to persuade an existing customer to buy again than to acquire a new customer. Nevertheless, the focus is often primarily on selling to new customers when it comes to boosting revenue. But it is the active management of existing customers that secures sales in the long term. You can run as much as you like at the front. If you lose one for every new customer at the back, you are treading water.
At this point, excellent after-sales is a very effective customer retention tool that should be actively expanded in order to achieve sustainable and long-term success. In addition to securing sales potential, active management of existing customers also offers other advantages. For example, communication measures with existing customers are much easier to implement than when approaching new customers.
This is not only because the approach is generally less complicated for data protection reasons. This is because the data collected from previous business relationships means that existing customers can also be approached in a much more targeted manner. This greatly increases the chances of closing positive deals.
Existing customers are also far less price-sensitive than new customers and are more likely to recommend your company's services to others.
How can we turn new customers into existing customers in after-sales?
The after-sales area achieves this in two different ways: Firstly, an excellent service experience boosts the sale of primary products. This is because satisfied customers will naturally remember this positive impression when they buy the next product.
On the other hand, the service can also generate revenue itself by selling after-sales services and create continuous points of contact with the customer. If successfully structured, this ultimately turns the customer into a regular buyer. Last but not least, this transforms service from a cost factor into a profitable business area.
Proactive customer service as a means of customer retention
An important element of customer loyalty is the Complaints management. Because it is of crucial importance for customer satisfaction. It is therefore essential to be properly positioned here. A proactive customer service does not just wait for complaints to arise, but actively seeks feedback. If implemented correctly, this can strengthen buyer loyalty to your company.
Here you can take advantage of the great benefit of being able to address existing customers more easily. You might also consider developing your own customer platform. This way, you don't have to wait for the right time to make contact - the customers will come to you.
Design service contracts correctly to retain customers
In many industries, service contracts can also make a major contribution to customer loyalty. Service contracts give customers the security of knowing they can rely on using the product they have purchased. They also offer you as a service manager the opportunity to provide additional product-related services that generate a constant stream of income for your company.
This also provides you with a very important tool for continuously developing positive touchpoints with customers and retaining their loyalty to your company in the long term. In order to be really successful here, however, a lot should already be done when drafting the contracts so that the contract portfolio meets with a high level of acceptance. More info>>
Value Added Services offer added value
The development of value-added services, including Value Added Services is a good way to retain customers in the long term and develop them into lucrative existing customers. At least as long as these are targeted to the customer's needs.
So think about what needs arise from the purchase of the primary product and what related services you can develop beyond simply offering the classic support function. Advancing digitalization in particular offers a wide range of opportunities to offer data-driven services that create real added value and make your offering unique.
The easiest way to turn new customers into existing customers is via the service department! Take advantage of this opportunity and bear in mind above all that you sometimes have to point this fact out emphatically to your superiors. However, if you persevere, you have the most effective lever for sustainable customer loyalty in your after-sales department.
If, on the other hand, you don't perform well in your service, you'll make a mockery of all your sales efforts, as customers will very quickly turn their backs on you. Light and shadow are very close together here.
