Today we’re on Stage 21 where the task is to focus on how you increase the frequency of purchase by your customers. We’ve covered the first two – Lead Generation and Lead Conversion. These focus on getting more customers. Now it is time to focus on making the most of the customers that you already have and those you now are gaining.
As we discussed earlier, I call these the mountain stages of the Tour de Profit. These are the most grueling challenges in the 52 stage race, but they are also the stages that will separate you from your competition.
Let me remind you, most of your competitors have no clue what the Business Chassis is all about. The impact of these 5 critical elements is not simply additive, but rather has a multiplying effect on your sales and profits. I remind you of this so you will not lose focus. So you will stay engaged and determined to win these difficult stages in the race.
So, do you know what the average frequency of purchase is for your business? How often does the average customer buy from you in a year? I realize there is a wide range – from those who buy only once to those who may buy monthly, weekly or even daily. Simply take all your transactions in the period and divide them by the number of unique customers you have served in that same time period. That is your average purchase frequency. If you do not know it, take a few minutes right now to calculate it. You may ask, Why is this so important?
Your Profit Tip of the Day
Your Customers average Frequency of Purchase is one of the most powerful components of the Business Chassis. You have already landed the customer, so you don’t have to spend money trying to find them – they are already in your database. You don’t have to pay a fee to get their contact data – you already have it. You don’t even have to educate them on the benefits of doing business with you – they already know that.
Here’s a question worth pondering: Since it is easier to sell to someone who is already doing business with you, someone who already understands your value, why do you spend the majority of your time prospecting for new customers?
What are you doing to get those who already do business with you to simply do MORE business with you? Are you afraid you will bug them or scare them off? Are you not proud of your product or service? Are you not confident that you offer the best value proposition in your industry? Why be shy about it? Ask those who know and trust you already to buy more often!
I often tell the story of a florist in a small town I met. Just by simply reminding her current customers of what she had to offer, she had her biggest Father’s Day weekend in sales. And it did not cost her one dime! She simply invited her current customers to come back one more time.
Here are a few questions for you:
● Do your customers know everything you do?
● Do they know everything you offer?
● Are they currently buying your complete range of products or services?
● Are there other offerings that may also work for them?
● How do you make them aware of your entire line of products or services?
As you can see, there are many questions that need to be asked in this area. You could give your customers a time-sensitive offer at the time they make a purchase that gives them the incentive to come back within a specified period of time. You can create a frequent purchase program – as many restaurants do. Why not do that if you are a hairdresser or own an oil & lube shop?
If you don’t already know the frequency of purchase for your average customer, go find it now. Then start tracking it over the next several weeks. Communicate more frequently with your customers. Invite them to come back again and again.
Don’t be shy. They will let you know if you are going overboard.
If you’re looking for more success and freedom from your business, join my FREE, private Facebook Group called The Peloton. It’s where business owners like you are learning, sharing and working together to get better every day! Here’s the link: https://www.facebook.com/groups/jointhepeloton/
Come on – join us! And remember, whatever you do, RIDE HARD!
