Your goal is to increase the number of times a customer does business with you. The purpose of marketing as a whole is to attract customers. Once you have them as customers, it’s your duty to keep them coming back for more.
Most first-time sales yield substantially less profit than any subsequent sale. Let’s face it… there’s a real cost associated to finding customers. Any gross profits earned on that initial purchase are quickly absorbed by the costs of acquiring the customer. The real profits lie in additional sales made to satisfied customers.
Satisfying customers is crucial. But that in itself is not enough to ensure a steady flow of repeat buyers. To really make this concept pay, you have to constantly keep in touch with customers to let them know of new products and services, discounted items and special events and new attractions of any sort.
The potential payoff from repeat customers can be incredibly substantial. If you were to increase repeat purchases by just 10%, your sales totals would naturally increase by a similar amount (assuming average purchases were in the same range) but your profits can shoot way up, because your fixed costs have remained basically the same.
An additional benefit to increasing repeat purchases and therefore profitability, is the increased value it places on your business, should you ever decide to sell it.
Keys To Success
A certain percentage of customers will come back to buy again and again when you put their requirements first. The keys to developing lifetime customers are: delivering quality products and services, ensuring that customers remain happy with their purchases, establishing on-going communication or contact and reminding people of the benefits only your company delivers. To capitalize on this strategy you need to have a consumable product that people buy on a regular basis, or you need to constantly be adding additional products and services your clientele would be interested in.
Consumable product dealers are obvious choices to employ this strategy. Grocery stores, vitamin product dealers, beauty salons, barber shops, beauty products, should all be striving to nurture customers to get them back again and again.
Other businesses can add residual income from an existing customer base by offering add-on services to initial product sales. An home alarm system supplier can offer monthly monitoring for an additional fee. Software publishers can continually offer upgraded versions of their software programs. An insurance broker should not just assume clients will renew policies automatically. By keeping in touch and really working with clients and acting in their best interests, a broker can easily build a substantially larger and more profitable business.
Life-long buying patterns are based on relationships. Your success in generating repeat business is often the result of how well you nurture, feed , communicate with and care for your customers. Always make it worth their while to come back and buy from you again and again. Look for ways to get them back. Offer more. Offer new products and services. Make it unbelievably easy for them to buy from you again.
One final note; in order to start making more sales and build your business empire you must become an avid student of lead generation and marketing strategy the high-payoff items necessary for you to magnetically attact new clients to skyrocket your profits.
Copyright (c) 2007 Joe Heller