It’s no secret that businesses are always searching for that next customer. New leads and customers are the lifeblood of any business and without them no business can survive.
However, when it comes to increasing the bottom line we don’t necessarily need to go searching for new customers. The ultimate goldmine actually lies in your existing customers.
The first ‘yes’ is the hardest to get. With the internet revolution it can now take up to 21 points of contact to generate a sale and that’s achieved by using multiple media channels.
Your existing customers however, like, know, and trust you so getting another ‘yes’ from them isn’t as hard as you might think.
Here the four best profit maximisers to increase your customer value:
1) Increase Average Order or Purchase Size
Costa and Starbucks do this wonderfully by offering branded mugs, food, and coffee to take home. The point of sale is the most effective time to offer additional products and services to increase the order size.
“Would you like that as a meal or on its own?” McDonalds rigorously train their staff to ask that question every time a customer doesn’t ask for a meal. They know that to maximise their profit they need to increase order value per customer.
Think of smart ways to increase your order size; you’ll definitely see the results on your bottom line.
2) Increase Frequency of Repeat Purchase
Using rewards, discounts, frequent buyer cards, frequent contact, loyalty points, and new customer follow up systems, all help towards gaining a larger share of each customer’s expenditure.
3) Offer Customers a Greater Variety of Goods and Services
The most expensive function in any business is getting and keeping a customer, so it makes sense to work hard at doing more business with each customer. This is why it’s so important to have a complete follow up system for new customers to get them to buy your other products and services.
If you don’t have other products and services then you need to find joint venture partners who sell non competing products or services to your market. For example, I have a client who runs an estate agency, and once they’ve sold a house they’ve done their job. However, since becoming a client we’ve implemented a whole host of joint venture partners such as Solicitors, Morgage Lenders, Removal Companies, Builders etc. My client then receives a commission from every customer they put their way. It’s a smart way to increase the customer value.
Here’s a BIG secret. If you’re looking to develop other products and services in your business, develop them for your existing customers first.
4) Get Your Customers To Bring Their Friends, Family, Business Associates and Employees
Referral activity should be strategically managed as internal marketing, not just something that happens. It’s the cheapest and most powerful form of new business and will maximise your profits.
These are just four of many strategies you can use to grow your business and increase your profits. The best way to try and maximise the value of each of your customers is by picking one and implementing it!
They key to making more profit is implementation