The power of database marketing derives primarily from fact that this approach requires you to become intimately familiar with your customer.
Here Brian explains how to boost revenue from your existing customer base.
This article shares five ways to get your customers to buy more.
Bringing in new customers or clients is just one way to grow your business. As you've heard me say, there are three ways to grow a business two other ways are to increase size of purchases that your customers make, or to increase how frequently they buy from you. Now that you've got many new customers coming to you, it's time to learn how to make them buy more when they do! That's our focus here.
In this article, I'll share with you five sure-fire strategies for increasing average size of your customers' purchases. And I'll show you how to put them to use in your business or practice right away! You'll see an immediate surge in profits and gain a long-term advantage in your market. Are you ready for a breakthrough? Then read on...
Business owners spend incredible sums trying to bring in new customers. Marketing, advertising, promotions all with goal of bringing in new customers and new profits. Itís quite odd in a way. New customers are so much less profitable than established ones, in large part, because they are costly to buy, but most businesses focus on getting new customers.
Yes, you need a constant supply of new customers to replace inevitable attrition, ones that go away despite your best efforts. But so many businesses simply stop there. They spend all that time, money, and effort getting people in door, then waste a golden opportunity to profit further from this primed, captive audience. Think about it: Your customers or clients have come to you. They've made decision to buy. The hard part is done! All you have to do now is make sure they don't go away with less than they really want. Okay, how exactly do you do that?
Start with a philosophy first and foremost, your purpose must always be to serve your customer's or client's best interest. That compels you to question and examine how much more of an outcome or a result or a benefit or a savings or an increase or an exciting experience you can give that customer by adding more value to initial purchase.
2. Bundle Products or Services
The bundling approach is similar to cross-selling, except that you actually offer complementary products or services together as a complete package (rather than adding them on piecemeal at point of sale).
Sell 'Em What They Want
Want to boost your average customer purchase? Here's a tip: Talk to your customers. Afraid you'll sound pushy? Not if you engage your customer in a non-threatening way. Let's say you run a bait and tackle shop, and a customer comes into your store. You can tell by way he's looking around that maybe he's a novice fisherman. You might safely engage him in conversation by asking what kind of bait he plans to use that day and make a recommendation.
But customer really doesn't just want bait. If you engage him in conversation, you'll probably find that he's really looking for thrill of catching "the big one" a fish that he can mount on his wall. Or, maybe he's got a stressful job and is looking for relaxation some peace and quiet. Or, maybe he plans to take his son fishing for first time and wants a fond memory...
Your task, then, is to sell him what he really wants. You might recommend a better fishing spot, based on your knowledge of local hot spots. You might recommend a business, with whom you have a joint venture, where he can get his trophy fish mounted at a discount.
Based on information he provides you, you might be able to sell him a new rod and reel, or a disposable camera to take a picture of his son catching his first fish, or some sunscreen because there's no shade near fishing hole you're recommending, or rent him a fishing boat if he doesn't have one, or anything else that he doesn't have. You might even share a story about one that got away from you, or first time you took your son fishing and fond memories you have. Not only will that customer probably buy more from you, he'll probably come back to share his experience with you later that day or next day.
And he'll probably tell his friends about your shop. Here's my point: If you don't engage your customer in conversation, you'll sell him $2 worth of bait. But if you talk to him and find out what he's really looking to buy, you won't let "the big one" get away! Why bundle?
Most products and services need to be combined with other actions, other products, other services, other components to make them perform at maximum. Yet, most people don't know where to go and what to buy to make a product or service perform at its best, or to make a purchase complete. They simply accept sub-maximum.
You should approach bundling from assumption that every one of your customers would be willing to maximize their experience or their result if they knew their options and didn't have to go out of their way to identify, acquire, and combine all products and components. With that assumption made, you have opportunity and obligation to make it easy for your customer.
Why would you want them to buy one thing from you and then have to go all over city or country or industry looking for other components that will make your product or service perform at its best? Especially when you could do that legwork, that research, that sourcing for customer, providing them with an extraordinary advantage, benefit, and service.
You should identify best products or sendees that combine with product or service you sell. Then combine them or bundle them together as a one-stop, one-price transaction and give your customer an incredible value. You could put three or four products or sendees together, then reduce price on two or three of them, thus giving a much greater advantage to customer. But in aggregate, you would be making two, three, four times profit per transaction that you are used to when you normally sell just one product or service!
And because you make it easy for customer, it's a no-brainer! It's easy to see how bundling can be applied to retail industry, but what about service professions? No problem. If you're a real estate agent, you could offer a package that included (via joint ventures) moving van service, recarpeting and painting services, security system installation, etc. You could make a greater profit by bundling these services and offering a turnkey home ownership package.