We all want an endless stream of customers desperate to do business with us… but where are they all, and how can we get more of them? Have you ever worked out the cost of getting one new customer? You would likely be alarmed at just how much you have to invest to get one new pair of feet to cross your threshold to park their dollars in your cash register! Here are some simple tips supplied by Appetite For Business, an Aberdeen based business consultancy.
Do you neglect these opportunities?And you do keep a record of the results of your advertising and marketing efforts… don’t you? How much you have spent, how many enquiries you generated, how many enquiries converted into sales, and your net profit from those sales.If you have gone through that exercise you know exactly how much it costs you to get a single new customer, and how much that customer earned you, either gross, net, or both.And then you do it all over again… more expense, a few new customers, and too few dollars from all that effort!
But wait… you can’t stop there!What do you do with your nice new customers? Do you just hope to see them again one day, or do you actually encourage them to return and do more business with you? You see… you have already done the hard part, the expensive part… and now you have before you the opportunity to sell more to each new customer for very little additional cost.This is the nurturing part. Don’t assume that your customers are absolutely stunned at the products and service you have given them the opportunity to experience. You MUST reinforce the good experience that have just had, and actually ENCOURAGE them to buy from you again… and again.. and again! You get the idea?
Sadly, most business owners have little or no understanding of generating repeat business by just doing the basics. When I explain this concept to some owners the light comes on in their creative mind… and others miss the point completely… light globe blown I reckon!
Check this out…To keep the calculation easy… if your advertising costs you $1000 and it gains you 10 new customers, then each customer you acquire has cost you $100. So if each hasn’t generated $100 profit from their initial purchase then you lose… unless you arrange to keep selling to them. These flow-on sales are referred to as the “back-end”… either the same product re-sold, or a range of products that you feel are attractive to the customer and that they are likely to buy.
Because you have found out who your customers are, it only costs you a few cents to make further offers to them. Use email, the phone, or get your printer to run off some personalised letters or some flyers to include with your written invitation and compelling offer to revisit your business.Do these things and watch your business grow…