Sales Commando, which analysed the sales strategies of more than 30 firms in the financial services, travel and hospitality, and media sales sectors, found that 75% of them are missing out on a significant amount of business from existing customers because their focus is consistently driven towards attracting new clients.
Doug Tucker, managing director, said: “Our studies of and work with high profile and successful businesses across several sectors revealed the same alarming trend – the vast majority are failing to capitalise on their existing client base.
“Sales teams are almost exclusively directed towards securing business from new clients at the expense of winning extra business from existing customers.
“Nearly 70% of sales professionals we observed during our research missed clear opportunities to up-sell by up to a further 50%. This is a staggering amount of lost business from clients who are already committed and ‘buying into’ a brand. This is a loss of commission for the salesperson and a loss of revenue for the company.
He added: “Sales teams should be encouraged and trained to unlock the massive additional income potential in existing clients. When the correct strategies and techniques are used, it takes minimum effort and time and no cold-calling or high-pressure tactics are required. Both the client and the salesperson are satisfied.
“While securing new clients is, of course, fundamental for corporate growth and market share, too many sales teams let important sales chances with existing clients slip through their fingers and, in all likelihood, to a rival firm.
“At a time when new customers are increasingly hard to find and often initially reluctant and, when competition in most sectors is increasingly fierce, it is surprising that more firms do not do more to tap the potentially enormous revenue stream that their existing client base provides.”