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10 ways to diversify your customer base

Posted by Shivali Anand

December 30, 2021    |     4-minute read (782 words)

Small business owners sometimes become overly reliant on one or two large clients, ignoring the essential task of bringing on new customers. If things go wrong, being dependent on a small number of clients can be a dangerous blow to your organization. For example, if one of those clients were to switch to a different vendor or go out of business, you not only lose the client, but you also risk losing a significant chunk of your revenue.

If losing a single large customer could put your business’s livelihood at stake, it’s time to diversify and grow your client base. Establishing fresh income opportunities is much easier if your customer list is diversified.

Here are 10 ways to attract new customers so you don’t put all your eggs in one basket.

1. Expand your public relations efforts

Getting media attention is like getting free PR since it helps you reach out to people who may not otherwise have heard of you or your company. Whether you're preparing to hold a unique event, offer a special discount or debut a product, send press releases to relevant media outlets to garner interest and improve awareness to a wider network of customers.

2. Request referrals and testimonials

This is one of the most effective strategies to spread the word about your organization and establish a strong reputation. Ask existing clients to refer you to others who might be interested in your products or services. If your website doesn't already have client testimonials, go ahead and ask for them. Highlighting how your company has assisted critical clients can also help you attract prospects.

3. Expand into new markets

Consider advertising and selling your products and services to clients in various niches, sectors or geographical regions that are outside your existing territory. For example, if you own a beverage firm that sells to consumers in the hotel industry, consider targeting customers in the office, leisure, commercial or even retail sectors.

4. Expand your horizons

If your firm is well-established, you may be able to grow internationally and obtain exposure in global marketplaces. However, expanding international reach necessitates careful planning and a thorough grasp of the new markets. Learn about the local community, their beliefs and how they do business. Also, try to understand their culture and way of life.

5. Experiment with cold calling

Cold calling may appear to be archaic since many individuals simply hang up on such calls. But you may find a small number of people who are eager to listen to your pitch. Even if the response rate is only 5%, that 5% a day over several days and weeks might build up to 10, 20, 50 or 100 new clients.

6. Form strategic alliances

A strategic collaboration can help your company develop a new product or service, improve brand awareness, gain access to a new target market and grow geographically. Such alliances can benefit enterprises at practically any level of development with activities ranging from R&D or product marketing to product licensing or co-delivery of services.

7. Emphasize networking

One of the most efficient ways to expand your customer list is by networking. Attend industry events to learn about your competition and approach industry experts whose advice might assist in enhancing your sales. In addition to cultivating professional contacts, don't forget to create personal ties, which can also eventually lead to sales.

8. Make your virtual audience a real client

Most businesses require a solid social media strategy to thrive in the present economic climate. Build a presence for your firm on numerous sites, such as LinkedIn, Facebook, Twitter and Pinterest, depending on your sector. After that, engage followers by offering relevant, value-added information in the form of blogs, videos, chats, webinars and infographics. This can help raise your conversion rates and, in time, transform your online audience into actual consumers.

9. Extend your offerings

Diversifying your products and services is a fantastic strategy to attract a new demographic. This makes you appealing to more people, who may later become loyal customers. However, product diversification must consider operational effectiveness, which involves having the right resources, procedures and people in place to handle the diversification.

10. Embrace your competitors

It is not always necessary to go head-to-head with competitors to succeed in business. Working together is often far more beneficial. For example, by granting your rivals access to your network of supporters and members and vice versa, you may see a variety of positive outcomes, such as better attendance at events and exhibits, higher site traffic and so on. Keep in mind that by assisting your competitors, you may get the support of a much more comprehensive network.

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