Five Ways to Get Your Customers to Buy More by Brian Williams |
The power of database marketing derives primarily from the 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 the two other ways are to increase the size of the 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 the 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 the goal of bringing in new customers and new profits. It’s 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, the 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 the 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 the 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 the initial purchase.
2. Bundle Products or Services
The bundling approach is similar to cross-selling, except that you actually offer the complementary products or services together as a complete package (rather than adding them on piecemeal at the 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 the 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 the customer really doesn`t just want bait. If you engage him in conversation, you`ll probably find that he`s really looking for the 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 the 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 the 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 the 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 the 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 the one that got away from you, or the first time you took your son fishing and the 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 the 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 the 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 the products and components. With that assumption made, you have the opportunity and the 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 the city or the country or the 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 the customer, providing them with an extraordinary advantage, benefit, and service.
You should identify the best products or sendees that combine with the 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 the price on two or three of them, thus giving a much greater advantage to the customer. But in aggregate, you would be making two, three, four times the profit per transaction that you are used to when you normally sell just one product or service!
And because you make it easy for the customer, it`s a no-brainer! It`s easy to see how bundling can be applied to the 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.
Suppose you`re an accountant. Most accountants do either compliance or tax work. But why not also offer financial planning services as part of the package? What better source to recommend truly worthwhile investments and financial services than an accountant? The deal could be that in addition to handling compliance work even` month, you also recommend, manage, and advise your client`s investments all for a set fee (perhaps 50% above what you`d normally charge). It could mean a great increase in profit for you!
3. Use Point-of-Sale Promotions
Point-of-sale promotions are one of the most simple, automatic, instant, and predictable methods for massively increasing the total amount of a sale per customer. Let`s start with a common example. Think about your local convenience store or supermarket. At the checkout counter you`ll find chewing gum, cigarettes, magazines, beef jerky, lottery tickets, single-dose pain reliever packets, and Lord knows what else!
Research shows that up to half of everybody standing at the counter will choose one or more of these `impulse items.` In some cases, adding these extra items could as much as double the total sale simply because of the impulsiveness of making them available to customers at the point of sale. I have made it on http://www.my-mortgage-loans.co.uk
The same is true of signs in windows or on store shelves promoting specials: `Buy two, get the third one for half price!` Every time you do that, it motivates a percentage of your customers at that point to purchase the item. And that has the effect of increasing the average unit of sale.
Ever been in a K-Mart, where they had a Blue light Special? You`re in the store to buy something specific a piece of clothing, a hardware item, a household item of some sort. And then all of a sudden on the loudspeaker they announce an incredible Blue Light Special where you can buy this $50 appliance or tool or game for only $38.
Why do they do that? Because a lot of people who had no intention of buying that product or game or appliance will flock there and buy it. And even though profit is reduced incrementally, it`s all found money because they`ll sell 100 or 500 or 1,000 of those products in that brief time period many, many more than if it just sat on display at full price!
Think it can`t work for service professions? Think again. I have physician clients who put up signs up in their offices, continuously promoting various additional services or products you can get at the time of your visit. `Flu shots: $19 today only.` Special prices on vitamins. Reduced fees for complete physical examinations or specialized services. I`ve seen it work elsewhere as well. Health clubs have signs that say, `Free 15-minute facial with every full-hour massage.` Guess what happens? A lot of people commit!
4. Offer Good, Better, Best Options
The idea of offering people good, better, and best options has a number of very powerful factors working together to help your customer get the best outcome possible. The premise is that there are probably several different gradients of either quality or quantity that you could offer at graduated prices.
You could start with `good,` meaning the smallest size or the basic service. The `better` option might have more bells and whistles, be larger in size, or be somewhat more effective. `Best` would be like the Cadillac or the Rolls Royce or the Mercedes version of your product or service or a premium combination of the other choices. Prices increase according to grade, usually with the `best` option representing the greatest value for the dollar.
A common example of the good, better, best approach is at your local car wash. A basic, run-of-the-mill wash might be $6.00 a good deal. But a dollar more might get you a `Deluxe Car Wash,` which includes wax to make your car shine. Finally there`s the `Supreme Car Wash,` which includes wax and undercarriage wash and tire cleaner and chrome cleaner all for $8.00.
Who wants to get a simple wash when all these extras are available for just a couple dollars more? The good, better, best approach works on several levels. First of all, it provides a basic, economical option for those customers who might not have bought anything otherwise. But more importantly, it will likely steer about 30% to 50% of the people who would normally have bought grade one to buy somewhere between grade two and grade three, depending on the attributes and price incentives. And that has the effect of tremendously increasing the size of your order and the amount of profit per transaction!
5. Use Volume Discounts
The final method for increasing your average sale is to offer discounts based on volume. You can secure a lucrative contract, land a big client, or move a ton of inventory simply by offering a special rate for large quantities. In the process, you increase your average customer purchase substantially. The success and profitability of this approach is manifest by the numerous warehouse clubs Price Club, Sam`s Club, CostCo, etc. Now, if you`ve ever been in one of them, you know that you end up buying 15 bottles of ketchup, 60 rolls of toilet paper, and the giant-sized jar of peanut butter! Do we really think we need it? No! It`s just that the price incentive is so appealing we cannot say no! This is a phenomenon that has driven a multi-billion-dollar industry. You should recognize and consider borrowing this proven process for your business wherever possible.
Never Sell Them Less Than They Need!
No matter which approaches you use to boost your average customer purchase, never forget that it is your job no, it is your undying duty, responsibility, and obligation to sell your customer everything he needs to achieve their desired end result. If not, you are doing a grotesque disservice to your customers, and they may not buy from you again.
Remember: You`re not selling a product or service, you`re selling a desired result. If you truly embrace this philosophy, you won`t feel sheepish about selling additional products and services you`ll actually feel compelled to make recommendations or to tell your customer the whole story. And believe me, they`ll richly reward you for it!
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