Repeat Business - How to Make Sure They Come Back - again and again by giving them a reason to do so.
Copyright © 2004 James Yuille
The single most important asset of your business is the client database.
Why? Because your client base is both your most powerful sales tool and your best source of revenue!
It's difficult and expensive to attract new customers to any business, on or offline. You'd know that because like mine, your inbox is under constant bombardment from people who want to help you increase you list size or to increase your traffic rates and
have a "guaranteed" sure-fire method of doing so.
Offline, finding qualified buyers and a way to get to them is becoming increasingly difficult, too. The cost of client acquisition is becoming higher and higher.
Similarly offline, if you go to a list broker, you'll find that their fees are quite heavy and of course, unless you're brilliant at writing copy your chances of getting a high response rate are slim.
If you can consistently get above a 2% response, you're doing well!
(Sidebar: an offer arrived in my inbox today promoting a software package. When I read through the offer and followed all of the links, the clear message was that the offer showed about a 1.7% response. The offer made the vendor thousands of dollars though simply because he had a huge list. What I’d like to know is what’s happened to the other 98%?)
Everyone has read some statistic or other that attempts to indicate how much more it costs to attract a new customer as opposed to reselling an existing one. I've read figures as high as 80%. I think even that is an underestimation... I think it's much, much more.
The very best business you can get is via referrals and word of mouth. How many websites have you visited because someone suggested you should?
When you need a plumber, an electrician, a printer, a new computer, a new anything, how much more valuable is a word of mouth referral from a friend, relation or work colleague than sifting your way through the "name, rank and serial number" adverts in the phone book or the local newspaper?
Sales people and sales teams are expensive, high-risk investments. It's easy for them to become sidetracked and to lose their way.
It's far better to have your prospective customers come to you. It's far better to keep your current customers in the loop by keeping them abreast of your latest offering. It’s far better for a service-based business to offer customers an inducement to pay in advance or to renew early.
It's much more cost-efficient to offer a referral benefit, too.
The bottom line is this: your time, or your sales team's time is better spent talking to qualified, interested buyers and existing clients than fishing around for new ones.
Spend time nurturing your client base. It will pay you dividends!
© James Yuille, Brisbane, Australia, 2004.
About the writer:
James Yuille has 32 years experience in sales, sales management and training. He is currently involved in sales in the education market in Australia. He has written several courses on selling and information about his sales training system, “How to Gain and Retain More Customers” can be found at http://www.sales-training-tips.com. It provides answers and options for the situations discussed in his articles.
Profit Producing Tips for Small Businesses
Copyright © 2004 Kurt Geer
Account for everything. Employees, performance , inventory, sales, and receivables. If you can't do it find someone who can. It could be the life or death of your business.
Become your customer and know what she expects before she asks. Walk a mile in her shoes and you'll see things from her perspective. Then exceed her expectations.
Don't be afraid of the competition. If it is a major force you can strike lighting quick. Same size companies represent yardsticks for comparison to reach your full potential as a company.
Expand your niche in speed, specialization and service by discovering new markets and different market segments.
Follow up. the old 80 / 20 rule can be applied here. 80 percent of sales are from 20 percent of existing or former customers. Be tireless trying to find new customers.
Fusion market your small business. Team up with other business partners who can spread the word about your business when they close a sale. Make sure that your offer is a special promotion for that market partner.
Treat your business like family. They require constant attention, love, nurturing and support.
Trust your marketing, hang in there and follow your plan. Times change and if you can become a rock of stability your chance of success will increase tenfold.
When planning the future forget the past. Expectations, service and technology represent opportunities for change. Work on your passion. Passion is a heart felt difference or that feeling deep down in your bones. Get emotional about it. Don't get paralyzed from the neck up and freeze up the process before it gets untracked.
The psychology of buyers coming out of the last recession and continuing through the boom, buyers were divided into 5 categories, they will continue coming out of any current recession.
29 percent are Practical Loyalists - Buyers who try to save on the brands they are loyal to.
26 percent are Bottom line Price buyers - Buyers who buy simply on price and do not care if it is a brand name or not.
24 percent are Opportunity switchers - These buyers watch for sales or use coupons when shopping.
13 percent are deal hunters - These buyers are value hunters and do not mind which brand it is as long as it is a bargain.
8 percent are nonstrategists - These buyers just buy and go with no strategy.
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Kurt Geer has been helping folks online since 1999.
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