There is a common refrain among business owners – it costs 5X more to create a new customer as it does to keep an existing customer. For dealers in the technology channel, this can be easy to dismiss – many jobs are viewed as one-and-done. The home theater is complete, those outdoor speakers were installed in time for the Memorial Day BBQ – job accomplished.
Many dealers in the technology space have still not set up recurring revenue models and that’s ok, maybe they’re not prepared to support it but that does not mean there is no room to do more business with your existing client base. Here are three ways that you can find new sales opportunities in old places:
The Add On
The Z-Wave Alliance recently put out their annual ecosystem report which found in the U.S., 97% of control system owners and 90% of smart security system owners have added additional smart home devices after initial purchase. The tip – a job is never really over.
What can be added to a customer’s system that will upgrade the experience? Keep detailed notes of your proposals and we’ve even heard of dealers having success with a staged approach. Stage one would be the initial system and after that install check-in after 3 months when the homeowners have had time to use it and can articulate what they wish the system could do, and there comes the add-on opportunity.
The New Owner
The last year has been HOT for the housing market but as we all know as interest rates rise a cooldown is in full effect. Take a look at your client roster – check the address on popular realtor sites to see if it’s recently been put on the market or sold. Connecting with the new homeowner can be a great way to show them what’s been installed, how it works and offer suggestions to the system so they can make it their own. We can call this tactic the lower-cost new customer, you’ll still have to put in effort to close the sale but you’ll be familiar with the existing infrastructure.
The Seasonal Upgrades
If you find yourself in a place where business has slowed a touch, there is no better time to start planning out your marketing efforts for the rest of the year. Starting with a seasonal upgrade campaign is an easy place to begin– for example as we edge toward those summer months – we’re thinking outdoor speakers, maybe some landscape lighting. In the fall, back to school can mean there is no better time to make sure the network is ready to handle those eLearning days or research for school projects some people already have holidays on their minds and how they will wow and entertain their families. In winter we have the Super Bowl and of course, all the Awards Season Shows like the Oscars.
Plan out your content now from postcards to emails and even social media. Think about how your customers will best connect with you and what upgrades will be appealing to them each season. How about offering customers who bought a 65in TV 5 years ago a chance to upgrade to a 80in 4K at a lower cost than they paid for the 1080P 65!
Why work 5X as hard, or incur a 5X cost for new customers? There are plenty of ways to engage with previous install clients, and the PowerHouse Alliance is there to support your needs throughout North America and Canada– our members can help you find the right products to support all of your client needs.
