Winning new business is always exciting. While I don’t know how people act where you work, I suspect that retaining existing customers seldom gets the high-fives and pizza parties that a shiny new account does.
Here at Marco, we always keep a close watch on our client satisfaction surveys, and providing excellent customer service is hard-wired into our core values. But I doubt I’ll live to see the day when this industry isn’t highly competitive and client-poaching isn’t common practice. As much as you continue to evolve and refine your offerings and processes, there will always be someone who tries to offer their services at an ever-so-slightly cheaper rate. Plus, as inflation squeezes us all, I imagine more of our clients will also be desperate to reduce their monthly bills, even by a little bit.
Add-Ons to Grow On
Cross-selling is an excellent way of doubling your revenue without having to win a new customer. The proverbial “bird” that was once worth five in the bush could now be worth ten. But that’s not even the best part. At Marco, we’ve found that the more services we provide to a single client, the greater the odds they’ll stay with us. Our retention rates are always high, with percentiles usually in the high 80s and low 90s. But they soar into the high 90s if we’re looking at clients that receive more than one offering.
We’re fortunate that we already offer a large number of services, and we have the technical expertise to back them. But if I was just starting to branch out, there are a few services I’d consider adding soon: physical security, A/V solutions, portable electric vehicle charging stations, shredding, robotic process automation and/or metered mail.
None of these will likely be the heavy hitters that managed print or managed IT are, but they’re easier to add and can not only create recurring revenue, but also help you create stronger ties to your existing clients. Additionally, they may be the key to getting your foot in the door with new ones.
For example, electric vehicles are gaining in popularity, but charging stations are still a rarity—even at many larger organizations such as public schools and hospitals. Providing portable charging stations is a great way to meet with decision-makers, plus you’ll profit every time someone plugs in. It’s also a big win for your clients and stakeholders—providing portable charging stations can help them attract and retain talent.
Now that more workplaces operate in a hybrid model, audio-visual solutions that can easily accommodate in-person and remote guests have become more attractive. And businesses without a full-time receptionist can access new features that allow someone in a meeting to see who’s at the front door and buzz them in without interrupting important business. You should also ask if people are frequently getting buzzed in without a glance. This can kickstart a conversation about upgrading the business’ physical security since they got rid of their front-desk staff.
Shredding services and metered mail are also great services to add, particularly if you’re already providing managed print. And if you have clients that must meet compliance requirements, secure shredding solves a problem they already know they have.
Finally, Marco has recently implemented robotics process automation across its entire organization. I’ve seen how automating tedious administrative tasks can help a company improve its employee experience while providing a more thoughtful, human-centered approach to customer service. We’ve started offering RPA solutions to our clients, and while RPA remains a buzzword for many small and midsize companies, it’s going to be a necessity for most businesses that want to remain competitive in the next 10 years.
The True Power of the Twofer
Once you have additional products and services, you can offer something many of your competitors can’t—the ability to create special offers and service bundles that help clients save money.
I hope we’ll be able to escape a recession, but most executives I know are preparing for at least a challenging financial year, if not a challenging few years. Additional services—especially ones that provide steady income and offset price fluctuations in other areas—can also help you add resilience to your business.
But first, a caveat: there are two Warren Buffett quotes that are often invoked to advise investors, but I find they’re just as applicable for business owners and executives: “Never depend on a single income. Make an investment to create a second source.” and “Never invest in a business you cannot understand.”
Every product and service I suggested in this article has the potential to be an excellent investment for a dealer looking to boost customer retention and increase revenue. However, many also require a good deal of technical expertise. Before you roll out something new, make sure your staff is able to support it with the same level of proficiency as your other offerings. This is a trust-based business, and no shiny new account is worth more than your reputation.
