Some of my ideas on how to boost sales!
Current Marketing Practices
Most companies are very sales driven, and in this economic climate you need to make every sale possible just to survive! But most companies miss the biggest opportunity there is, their current customer base and over 80% of marketing £s are spent on generating new customers. There is an easier way to boost sales.
On average it is 6 times more expensive converting a new customer rather than an existing one. And not only do repeat customers spend over average 33% more, they are also twice as likely to refer your business to someone else!
Understand Your Failures
With this in mind there are a few steps you need to take for you to understand how help boost sales without increasing your marketing budget:
1. Measure your current repeat custom level
All companies will have a repeat cycle their customers should engage in, whether this is weekly for supermarkets or annually for promotional items companies. Sit down with your order book and calculate the % of repeat custom. Use as much data as you possibly can to make this as accurate as possible.
2. Analyse why customers are not returning.
Spend some time creating a good quality feedback form. Use various methods of communication whether this is by phone, email, face to face or social media, make sure you give your previous customers every chance to communicate in a method they feel comfortable.
3. Ensure it is a collective management priority to positively affect the customer retention KPI.
No single person should be made responsible for managing customer retention. It must be made applicable to everyone from the top to the bottom. Everyone can contribute in their own department to improving the customer’s experience.
4. Give the KPI chance to settle, then reflect and repeat.
It is no use re-analysing your repeat custom KPI weekly if your customer cycle is monthly. But this does not mean forget about it until the end of the month, you can continuously be working on collecting feedback to make the analysis easier.
Boost Customer Retention and Sales
As you are likely to find out, a couple of main reasons why customers leave are because, they either took a competitors offer or they felt their custom was not appreciated. You can look to change the balance of your marketing budget towards a more equal split, between generating new customers and retaining your current customers.
There are some great value promotional items that can be sent out to all customers to communicate your current offers, maybe think about having a unique code printed on these items so only your customers can use them. This will not only stop them looking elsewhere for special offers but also make them feel extremely valued. You can make your big spending customers feel even more valued with a higher value promotional item such as a hoodie or executive portfolio.
Use your feedback, spend a little extra on your current customers and you will see the benefits...
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