How do I generate more sales per customer?
by Murray Smith | posted on July 15th, 2008 | Attract More Clients
In my previous post we discussed how to get more profits per sale.
Today we’re going to look at the second of the three crucial questions that every business owner has to ask themselves every day, and that is this: How do I get more sales per customer?
After all, you absorb substantial cost and expend a lot of effort to obtain your customers, so why not try to sell them more?
First, there are several things to think about. You need to consider:
- The frequency of interactions you have with your customer
- Their lifetime cycle (how much they will buy from you over the five years or so of your relationship)
- Their value per transaction.
In order to optimize your relationships with each customer, you have to tell them about every component of your business. Your customers should be aware of all the products and services that your company provides. You can achieve this through back-end sales or “upselling” a client with a particular product or service that compliments what they are already buying. This can be as simple as asking at the point of sale, “Do you want to super-size that?”
Another for-instance: Many small businesses have taken an example from airline companies by starting their own frequent buyer rewards card. This is smart. Offering rewards to loyal customers will not only increase their frequency of purchase, but also extend their lifecycle.
Other alternatives include expanding your product line or range of services to accommodate a more diverse customer base.
The ultimate goal is to first get more profits per sales, then engage your customer to buy more!
In my next post, we’ll look at the crucial question: How do I find more customers?
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