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Bundaberg Chamber News

Reactivate And Revitalise Your Lost And Inactive Customers

- posted by Yale Morgan

"I need more customers - Sales are down! Please help me with marketing!” is a common call I get. My standard response is great, yes, of course we can do that, but before we spend money, time and energy getting new customers - what are you doing with your existing customers? What is your current conversion rate? (lets face it, if you're only converting 20-40% no point you burning more potential customers!). Another question I always ask is - How about those who no longer buy from you, they once liked and trusted you, lets look to reactivate them.

Obviously the first option of increased marketing to get more customers is expensive and if done incorrectly you’ll only end up with bargain hunters with no long term loyalty to you or your business. In another article we’ll talk about the value of your current customers and increasing conversions etc, but for today lets focus on those who you believe maybe be lost or inactive.

Did you know that a staggering 68% of customers leave because of poor service and their “perceived” indifference with staff or management - Wow! Remember, they once knew, liked and trusted you - lets get them back.

The best part - its simple and profitable! Plus they stay for the long term. Ok, so how do you do it?

Firstly you’ll need to determine what a lapsed customer is and what a lost customer is, this will vary based on industry and traditional spending habits. As an example, a maternity wear store has a limited life cycle of a customer and perhaps only 3-4 purchases over a few months, whereas a hair dresser should have a life cycle until the customer is no longer with us on this earth returning every 6-8 weeks. So .. you determine the life of your customer and the frequency of how often they should re purchase. As an example if they should purchase every 4 weeks and you haven't seen them for 8 I would consider that a lapsed customer, if you haven't seen them for 6 months to a year, consider them as lost.

Once you have determined the parameters, its time to get top work on the database identifying them, but wait - don't just flick out a “special” we want to get back in touch in a nice and unthreatening way. You would also need to know what your “offer” for them to return is (could be a gift of some sort). Once you have these, determine the method and frequency of contact.

Why not poor through your database this week and make a list of those customers who have lapsed and are lost, get your team involved and come up with ways to bring them back to your business.

To Your Business Success

Cheers,

Yale Morgan


Increase Your Sales Effortlessly Part 4 - Using Down Selling

- posted by Yale Morgan

Over the past few weeks, we’ve discussed the easiest way to increase your sales and profits was to simply sell more to those who already know, like and trust you. Three of the skill sets we referred to was to use a “Bump”, “Up-Selling” and “Cross Selling” (if you missed any, email me and I’ll flick you over a copy). This week, we’ll talk about “Down Selling”. In essence, sell up by selling down.

After you have qualified the customer and moving towards your recommendations/ sample etc, always first offer the higher-priced, feature-packed version of your product or service. (Just so you know, rule of thumb is people will most likely spend 50% more than their original “quoted” budget.) If they don’t take the higher priced product or service, only then present them with the down-sell version - one that retains the same basic core benefits of your premium product, but at a lower price.

There’s a very good reason for offering your premium product first! According Robert Cialdini, Ph.D. in his book, Influence: The Psychology of Persuasion, people are much more likely to purchase a lower priced version of a product or service once they have been exposed to the higher priced product or service they’re interested in. When you start at the bottom and work your way up, you may get to the secondary price point, but certainly not the higher. When you start high, they most often only drop back one level, thus giving you a higher average selling price every time. (And I would expect with higher bankable dollar margins)

Dr Cialdini also states that customers that buy quantities of your high-priced product or service are also likely to buy much more of the same or similar product or service if they are offered a bulk purchase discount. Which customers might be willing to buy extra quantities at a reduced cost? Make a list! They’re likely to be your best customers.

How do we maximise all of these selling techniques? Bumps, up-sells, cross-sells and down-sells don’t have to be used separately. Here’s an exercise: First try up-selling to your customers, and then bump the up-sell. If that’s successful, you may want to try cross-selling other products or services to your customers. If they don’t commit, make a down-sell offer.

Now here’s a tip. Don’t be afraid of appearing to be too pushy - people always like to receive offers on products and services that interest them. (I must stress the key words are “interest THEM” and the value needs to be exceptional)

With your knowledge across these article on bumps, up-sells, cross-sells and down-sells, it’s time to put them into ACTION.

To Your Business Success

Cheers



Yale Morgan


Increase Your Sales Effortlessly Part 3 - Using Cross Selling

- posted by Yale Morgan

Over the past couple of weeks, we discussed the easiest way to increase your sales and profits was to simply sell more to those who already know, like and trust you. Two of the skill sets we referred to was to use a “Bump” and “Up-Selling” (if you missed either, email me and I’ll flick you over a copy). This week, we’ll talk about “Cross Selling”.

With cross-selling, you offer customers a complementary product or service to those products or services they are purchasing. As with all selling skills, most of it comes down to effective lists and scripts for your team.

As a start, draw up a cross selling list for your products and services, then simple scripts the team use as a basis of the conversation. Simply, Identify all the products or services you sell that complement other products or services you offer.

For example, if you run a cafe or restaurant, your cross-selling list might contain:

1. Internal and external catering functions

2. Cooking classes

3. Exhibition of art work

4. Wine and cheese tasting

5. Barista Courses

6. Culinary Tours

As you can see, often, outside the box thinking can lead to some extremely profitable additional sales!

That said, your business may not have the ability to cross sell (not sure I can thank of many that don”t), but if that’s you, consider attaching yourself to a non competing, complimentary business. This could form a strong partnership for future business opportunities. Often this is a great strategy for smaller businesses combining to combat a larger competitor, a national chain store etc.

This strategy works extremely well, as your customers already know you, like you and trust with you giving you a distinct advantage to consistently make complementary offers to them. Of course, they must always be of value and benefit to your customers or clients.

To Your Business Success

Cheers



Yale Morgan


Increase Your Sales Part 2 - Using "Up-Selling"

- posted by Yale Morgan

Last week we discussed the easiest way to increase your sales and profits was to simply sell more to those who already know, like and trust you. One one of the skill sets we referred to was to use a “Bump”. (if you missed it, email me and I’ll flick you over a copy). This week, we’ll talk about “Up Selling”.

What is it? All we are doing here is showing the customer the benefits of purchasing the higher priced product over what they are looking to purchase. You’ll do this by increasing the perceived benefits of the product or service and enhancing the value back to the buyer. Of course, this must be done ethnically and the higher priced product or service must live up to your word.

This is also a great opportunity to “package” a bunch of products together that have a high value that work out less expensive when purchased at the point of sale. Often when offering finance or extended terms, this is an easier option and not a strain on your customers cash flow.

Take a look at your products and services, and where can you use this strategy? As we suggested with Bumps, develop” up sell” packages and scripts for your team to use. I would also suggest the packages you’re upsetting to are next to or close to the products/ services on offer. From a retail perspective, you don't want to take the customer on a ride around the store when up selling, it should be within reach of you and the customer. From a service point of view, again, make sure the up sell is the very next page/ process etc. We don't want to be rifling around files/ presentations/ booklets etc.

To Your Business Success

Cheers



Yale Morgan