Introducing the Magic Matrix
What is the Magic Matrix? (And why should I create one?)
The Magic Matrix is a table which allows you to reflect on the clients/customers you have and what services you deliver to each one. It is a fantastic way of spotting opportunities to cross-sell your services to your existing clients/customers. Cross-selling helps increase your revenue, customer satisfaction and helps create solid and long-lasting relationships. It’s beneficial for both parties as you increase your monthly revenue, and your client/customer (when they are cross-sold a product or service which is relevant to them) gets increased satisfaction, and their needs met.
If you’re unfamiliar with cross-selling, an example of it in action would be a law firm informing its existing clients about their other divisions. If you have recently bought a house, you will use a law firm and be a property client. But there is an excellent opportunity for the law firm to cross-sell to you. Since you’ve bought a house, you’ll need your will revised (so your law firm can refer you to the wills and probate division). You also might have a family, so the firm should make you aware of the family law division. Not only that, but perhaps you own your own business and can be referred to the employment division.
As you can tell, cross-selling is a fantastic way of increasing customer loyalty as you can increase the number of interactions your clients/customers have with your business, and you’re providing them with more services which suit their needs.
It is so important to make cross-selling a part of your sales strategy. Retaining your existing clients/customers is five times cheaper than targeting new ones, making cross-selling an incredibly effective way of quickly and easily increasing your business’ revenue.
How can I create a Magic Matrix?
To create a Magic Matrix, firstly, list your clients/customers in order of revenue down the page as rows.
It’s crucial to list your clients in order of the revenue they make for your business, as this will enable you to prioritise the order in which you target them. If they’re purchasing from you in high quantities, they’re likely pleased with your services and trust you. What’s more, it’s more probable they have the funds to spend more.
Across the page, list the products/services your business offers as your column titles. Continuing with the law example, the columns could be: property, family, wills and probate, company commercial, medical, personal injury, data protection, employment, and commercial litigation.
Once you’ve formatted your table, it is time to fill it in. Work through the table and fill out each box with a:
- Green tick – if you deliver that service/product to them.
- Red cross – if they don’t need that service/product so you know there isn’t an opportunity to cross-sell.
- Amber box – if you don’t currently provide that service/product to them, but there is an opportunity to do so.
Once you’ve done this, you can go one step further and review the amber boxes – discuss these opportunities with your team and add the initials of the team member whose responsibility it is to introduce that client/customer to the relevant department/product.
This will help with accountability. By identifying who will be responsible for ensuring that the client/customer is informed about an additional service/product, it’ll be more likely to happen. In the case of the law firm example, if you were a client of someone in the property division, it should be their responsibility to introduce you to other members of the law firm. Making it a quick and easy-to-implement way of cross-selling your services.
Your FREE Magic Matrix Template
As you now know, completing a Magic Matrix is a quick win as you can quickly and easily identify new revenue streams for your business.
A Magic Matrix allows you to:
- Spot opportunities you might not have otherwise seen.
- Recognise which clients are best to cross-sell to.
- Identify your most popular services.
To make completing a Magic Matrix even easier, we’re giving you a FREE downloadable pre-built Magic Matrix template! It’s already formatted in a spreadsheet, so all that is left for you to do is fill it in!
Click here to fill out the form to download your FREE Magic Matrix template.
