Many entrepreneurs believe the only way to increase sales is through traditional advertising methods such as radio, television and print ads.  While these mass mediums offer exposure to large audiences, they also tend to be quite expensive.  Moreover, unless they are targeted at a very narrow audience, they often miss the consumers who are most likely to buy the product offerings of the small business entreprenuer.

However, it should be noted that sales increases need not be achieved solely through expensive and elaborate methods.  By focusing on simple marketing tools that cost little to nothing, the entrepreneur can not only increase sales, but also improve customer loyalty and service.  Some of the most successful ways to improve sales performance are to utilize existing customers and positive word of mouth.
 

Increase Sales to Existing Customers

One of the most often overlooked areas to expand sales is with existing customers.  Most businesses focus on generating new business contacts instead of cultivating those they already have.  It is estimated that it is five times more costly to bring in a new customer than it is to increase sales with current clients.  Therefore, if a small business owner wants to add more value to their sales efforts, it is in their best interest to maximize sales to existing customers.

Several ways to increase sales to existing customers are to:¹

• Sell other products to your established customers
• Show them new uses for current products
• Have special sales
• Offer discounts for large quantity or repeat purchases
• Write personal letters thanking them for their business
• Track their puchases and send reminder letters about product needs and special offers
 

Another basic marketing technique to increase sales is word of mouth.  Positive word of mouth can be one of the least expensive and easiest approaches to generating new business.  When shopping for medical, legal or automotive services, nearly 40 percent of Americans base their selection decision on referrals from friends or family.  As further proof of the power in word of mouth, it has been shown that a prospect who has been refferred to a specific business is 80 percent more likely to become a customer.
 

Several ways to increase positive word of mouth are to:²

• Ensure every employee knows the importance of spreading the firm's name by word of mouth
• Recognize that excellent customer service is the easiest way to obtain positive word of mouth, and then make every effort to exceed customer expectations
• Tell clients, customers and other vendors that your business welcomes and relies on referrals
• Personally thank, via letter or phone call, those who have referred business to you
• Create some excitement through a special event, give-away, or contest to get people talking about your business

http://thesolution.com/web_pages/rxg/directional.pages/wbs_toc.htm
Sponsored by “World Business”, this site is aimed at small and home business entrepreneurs.  It offers a marketing manual that has been divided into relevant chapters, and includes listings of articles, tips and suggestions on how to attract new clients.

http://www.smartbiz.com/sbs
The “SmartBiz Network” site is sponsored by the Edward Lowe Foundation Small Business Information Center.  (FYI: Lowe invented kitty litter.)  The site provides advice and solutions on growing a business through thousands of archived articles and interactive how-to modules and worksheets.

http://edgeonline.com/archives/docs/sale511.stm
Home of the online magazine, Entrepreneurial Edge, this site provides a "Sales Increase Analysis Test."  Since most sales increases are derived from improvements in sales processes or marketing programs, the test asks specific questions related to a firm’s marketing and sales procedures.  At the end, it provides a scoring mechanism and tells the user in which areas they should direct resources in order to improve sales productivity.

http://www.lowe.org/smbiznet/
The “SmartBiz Network” site is sponsored by the Edward Lowe Foundation Small Business Information Center.  (FYI: he invented kitty litter.)  The site provides advice and solutions on growing a business and has thousands of archived articles and interactive how-to modules and worksheets.