The Power Of Expanded Usage

I've used this term - "expand usage" - a lot, because it is important (and often ignored) for many businesses. For example, the restaurant that has a great lunch business - what is done to get those customers to come in for dinner?

Consider a simple, mundane business like dry cleaning. We probably spend $300 a month at the dry cleaners, because most of my suits and shirts have to be cleaned after every on-stage wearing. In all the years that we've been dealing with dry cleaners, taking in shirts, suits, slacks, jackets, never once have we received a coupon for leather coat cleaning or drapery cleaning, etc.

The insurance agent who sells us business insurance has never once attempted to find out about any other insurance needs. Other than sending out the company newsletter, the State Farm guy who has my car insurance has never once, in any way, attempted to interest me in other products. Ford Motor Credit Corp. has my car loan, but no attempt has been made to sell me the Ford-branded VISA card.

Everywhere I look, I see businesses leaving lots of easy money on the table by making no attempts to expand customer usage.

Get this: it is easier to sell more and more often to a happy customer than it is to get a new customer. And, generally, profitability increases when you sell more (and more often) to fewer customers than when you sell less to more. Finally, your vulnerability to competition actually decreases when you sell more and more often to fewer customers because you will automatically be doing a better job of relationship nurturing. These three facts mandate an emphasis on deliberately expanding usage by existent customers.

A related application is to push a particular item: if you have a slow-moving product(s), then you can promote it with coupons to customers buying other products from you.

When my Ford Motor car loan payment booklet arrived, it should have come with a pitch letter, application and "thank you coupon" waiving all annual fees for that VISA. When the bill came from my doctor for the visit to get antibiotics, there should have been a pitch letter and discount coupon for a complete physical. Etc.

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