Sell More, Just Don’t Nickel and Dime Us

Most of us work quite hard to get new customers. We do a lot of marketing geared toward growing our market share. It’s expensive (at times) to gain new clients. At least, it’s more expensive to obtain a new customer than it is to work to keep a current customer. That’s a given in many industries.

So if you want to maximize your return, you want to make sure current customers are happy enough to stay. You want to limit attrition. But you also want to increase your earnings, which means selling more products or services. One of the ideal ways to do that is to sell additional services to your existing customers.

Many companies already do this. The cable company also sells phone and internet service. A cell phone company expands to include home phones and other devices. Specialty stores expand to include everyday items and groceries. There’s nothing wrong with trying to sell more to your customers.

What’s frustrating, though, is when a company just wants more money from you. They raise rates or charge you for every little item imaginable. None of us want to be nickel-and-dimed to death. Yet companies do this all the time. Cell phone companies. Banks. Credit card companies. If you don’t buy additional products from them and instead stick to one thing that you’ve had for years, they start looking closely. How can they get more money from you?

Well, since they can’t get you to buy additional products, they start charging fees for every transaction. Walk into the bank instead of using the ATM? Fee. Carry a balance on your credit card, but don’t use it to make new purchases? Raise the interest rate. Have the same cell phone for 3 or 4 years? You’re out of contract so we’re going to charge for nights and weekends now. That promotion expired. Sorry.

Companies, you need to stop this tactic. You are not respecting your customers. And frankly, we’re getting tired of it. By all means, market to your existing customers. There’s already a relationship there. But if they want to stick with what they already have, let them be. Stop trying to squeeze more money out of them. That’s the time to add more customers who are willing to buy multiple services.

Just don’t forget that those original loyal customers helped get you where you are. Too many companies have forgotten that. And the steady, loyal customers lose out in the end.

image: lumaxart