Do you face the dilemma of trying to figure out why things simply aren’t turning out as well as they should be in terms of your profit margins? It can be confusing for business owners and managers who have followed all the right steps but still aren’t reaping the rewards. Perhaps you cracked the formula once, but haven’t been able to recreate that success again ever since?
What follows is a list of all the most common issues that cause this situation to occur. By working through these, you should be able to identify gaps in your business model that are allowing your profits to leak out, and figure out how to seal them once and for all.
1) Ignoring existing clients
Once you’re past the initial stages of selling to someone or signing them up for your service, it’s easy to get caught up in the pressure of sourcing new customers and forget about those you already connected with. Many of these could be an untapped source of income for you. Worse, they might not see the point of paying again when it becomes time for them to renew their subscription.
2) Lack of engagement
On a similar note, you need to be making a connection with people post-sales. This is the point where customers should truly begin to understand the benefits of working with you, and feel the benefits your brand claims to offer. Engaging with these clients one-to-one is vital, but many businesses fail to do so. This is what leads to high turnover and low retention.
3) Lack of personal relationships
Sometimes it can be frustrating when you know your offer is the best, on paper, but the customer chooses to go with someone else and you lose a sale. This is most often because they felt an emotional link with another company or person, and this was a deal maker for the client. To solve this problem, you need to work on your skills (or the skills of your employees) when it comes to building trust and personal connections.
4) Asking for too much, too soon
In many cases, committing to handing over a large sum of money to an unknown company is simply a risk that a customer isn’t willing to take. Why should they, if you don’t offer them any kind of safety net? A great way to do so would be to offer a free sample or trial to reassure your customer before they are expected to make that big commitment.
5) Lack of third party reassurance
Another thing that can scare off potential clients is not having the ability to compare your offering with your competitors. You need to make sure these prospects have easy access to trusted reviews and recommendations from experts in the field, so they can be reassured that they are making the right choice. Anyone can promise to provide the best results, but how are you going to support your claims?