Many marketing efforts fail because they don’t clearly identify the intended target market segments or link their marketing initiatives to a specific strategy focused on these segments. Instead, marketing efforts are directed generally at everyone with a broad message that doesn’t resonate with anyone in particular.
I like to approach marketing efforts from a broad perspective initially. It seems to me that businesses only have two paths for growth. One path is to sell more to existing customers. The other path is to sell to new customers. Each requires a unique marketing strategy and initiatives. The first path is measured by customer retention and add-on sales. The second path is measured by new sales. Both paths require a customer-focused organization, which is the topic for another time.
Prerequisites for selling more to existing customers are the existence of a compelling value proposition, flawless execution of product/services, and an organization that really cares about its customers. I refer to these as prerequisites because they lead to high customer retention rates. Without high levels of customer retention, it will be very difficult to sell more to existing customers.
Once a business has a solid customer base, they should focus on add-on sales to these customers. After all, they’ve already made significant investments in the customer relationship. They’ve built trust. Why not get in deeper with these customers? What else do they need that you can help them with?
Acquiring new customers, on the other hand, requires a different approach. Creating new sales demands investments in marketing initiatives designed to create awareness of the brand and interest in its offerings. It demands investments in salespeople and processes to develop these new customer relationships.
In all cases, marketing efforts must be planned to support the overall strategic direction of the company. They need to be funded and supported at all levels of the organization. They need to be measured and analyzed for their effectiveness.
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