Your customers are, in a very real sense, the backbone of your business. Without them, you wouldn't have a business. While it's essential to treat your customers well to ensure they return to your business again and again, you must also learn how to generate more sales from each customer to increase your business's profitability.

Upsell your customers

An effective way of generating more sales from each customer at the time of purchase is to upsell. Upselling requires you to convince your customers, without being pushy or overbearing, that they need the product or service. A key to upselling is to only upsell products your customers actually need, especially if you want those customers to become and to remain repeat customers.

One way you can upsell your customers is to offer leveled products or services. For example, if you are a Web designer, you might want to offer a Gold package, a Silver package, and a Bronze package. The Gold package might include Web design, content, and Web hosting and would offer your customers the most bang for their buck, making it an attractive upsell. The Silver and Bronze packages would also offer services at a discounted rate.

Cross sell your customers

Cross selling to your customers can also generate more sales from each customer. Cross selling simply means you're selling another product to the customer that is comparable to the product they already plan to purchase. For example, if you're selling your customer a pair of shoes, you might want to cross sell him socks to go with those shoes. Or, if you're selling golf clubs, you might want to cross sell a golf bag or golf balls.

Regardless of whether you are upselling or cross selling, make sure that the products or services you're trying to sell to your customers are relevant to the product or service they are already purchasing.

Offer bundled products

Bundled products allow you to generate more sales from each customer while also offering your customers a discount if they purchase the particular products in a bundle. Bundled packages are increasingly popular with communications companies that offer telephone, internet, and television services in a bundle.

A customer who opts for the telephone and internet service will receive a discounted rate on that bundled package just as a customer who wants the telephone, internet, and television bundle will get a discount on the package compared to someone who purchases each service separately from another company.

Think of how you can bundle your products or services to offer your customers more value and to increase your bottom line.

Start a customer loyalty rewards program

Customers like to be treated well. One way to reward your customers for being loyal, repeat customers is to start a customer loyalty rewards program. Many businesses successfully offer customer reward programs. For example, there are hotel chains that offer a customer card. Each stay at the hotel earns the customer points, and once enough points are earned, that customer earns a free night's stay.

Make sure your customer loyalty program is easy and free to join.