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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
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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!
Brian Williams:
Editor, http://www.my-mortgage-
loans.co.uk http://www.media-press-
release.com http://www.my-casino-gam
bling.com
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