2. Increase the Number of Times Customers Come Back
Increasing the ‘transaction frequency’ – or the number of times someone deals with you is an important step to increasing your profitability. In fact, some would say this is the most important ingredient of all. Studies suggest it costs up to 6 times more to win a new customer than it does to have an existing customer buy again. So how can you encourage repeat business?
- Inspire Customer Loyalty – Motivating your customers to come back to your business more often is vital to the long-term health and profitably of your business. The more frequently your customers purchase from you, the greater your profits. The most important customer list in the world is the one you already have. Loyal customers will not only return to your business, they will become walking advertisements for you. They will refer their friends and family to you. The easiest way to get new customers is through your current customers.
- Know Your Best Customers – This can be done by simply classifying your customers into A, B, C and D categories. This means that your on-going communication and marketing approach will be more appropriate for each group. Gather information about your customers. The more you know about them, the better service you can provide.
- Provide Awesome Service – Creating a team commitment to service can keep your customers returning and referring. You need to train your team so they deliver consistently outstanding service. Be exceptional and exceed customer expectations. Make sure your service is better and quicker, provide longer and/or stronger guarantees. Your team also need to have clearer guidelines for problem-solving, how to ‘think-out-of-the-box’ and be empowered to do so.
ASK NOT WHAT THE CUSTOMER CAN DO FOR YOU, BUT WHAT YOU CAN DO FOR THE CUSTOMER!
- Stop the Leakage – If you are losing customers think about ways to retain them and stop the defections. When money is tight customers expect more for their dollar. Refine your customer service strategy to insure that every step from taking the order to delivery is client focused and effective. How can you make the service more efficient and valuable so you retain their business? Identify and follow up lost sales and customers.
- Nurture Your Customers – Nurturing is the most cost effective way to make customers feel valued and motivated to keep purchasing from you. The more you stay in touch with them the more likely they are to remember you. Newsletters, special offers, service reminders and thank you notes are all effective strategies. You could establish a loyalty program with rewards for frequent purchases. Your current customers are most important as they are walking/talking advertisements for your business and will refer friends and family to you. Offer on-going support, education or advise about your products or services.
- Use Customer Comment – Asking for feedback lets customers know that you are truly interested in them and their opinion – something other businesses may not even bother with. Most customers will not tell you about their negative experiences but will simply ‘vote with their feet’. Follow up and make sure they are happy and THANK THEM for their business and referrals. The feedback can also be extremely valuable for your strategic planning. Make sure feedback has been auctioned to ensure customers can see their suggestions are valued.
This completes Stage 2 of ‘Four Ways to Grow Your Business’. Each of the above items can be substantially widened to help your business grow. We can work with you and make a plan so that it works. Call me at 416.488.1801 or drop me a line at firstname.lastname@example.org. I would be happy to show you how we can help.
As well, if you can’t wait for Stage 3 and 4 over the next month in new BLOGS, I would be pleased to give you a private preview addressed specifically for your business.