Greater Wallet Share: Help Customers Buy More, and More Often

"Profit in business comes from repeat customers, customers that boast about your project or service, and that bring friends with them." - W. Edwards Deming

To be successful at getting your current customers to spend more with your organization and more often, you must increase the "perceived value" of what you offer.  You must educate your customers so that they desire your products/services even more.

To make this happen, you must first increase the collective "self-esteem" of your organization.  You and your employees must believe that you are different, better, special and highly valuable to your customers, even worth a premium price.  You must fight the "we are a commodity" mindset with every fiber of your mind, body, and soul.  The day you believe you are in a commodity industry or business is the day you begin to die.  If you are similar to the others, you must break out from the pack.  For example, add more services to your offering, give greater performance and money-back guarantees, provide on-going education seminars for your buyers or consider packaging/bundling other products or services with yours.  Again, be different and more valuable.

Here are some ideas to increase the average purchase size and frequency of your sales:

·         Raise your prices, if you can.  Educate your buyers on the superior advantages, benefits and results you provide them and explain "the reasons why" you need to raise prices - increasing manufacturing costs, customer-service enhancements, better guarantees, better ingredients, etc.

·         Upsell.  If your client/customer can achieve better results and more satisfaction, educate them on buying a higher-end product/service.  Do a better job of assessing their needs and matching to products/services that will give them the optimal buying experience and satisfaction.  You will increase your profits and their fulfillment.  Auto dealers are masters at getting customers to buy car models with the higher-end feature packages (i.e. leather interior, better stereos, etc.)

·         Cross-sell.  If you have multiple product lines or service lines, communicate and educate your customers/clients on the full spectrum of your solutions -- services, products, and expertise.  Continually ascertain their challenges/problems and match up with the other solutions you offer.  CPA firms, for example, cross-sell their audit clients on tax and consulting services.  Banks cross-sell their checking customers on investments, mortgages, lines of credit, credit cards, etc.

·         Bundle better.  Consider packaging complementary products/services together.  If a customer is going to buy a gas grill, for example, offer them a complete package of cooking utensils, mesquite wood chips, barbecue book, grill cover and apron.  By saving them time and helping them to buy a more "complete solution", you can probably charge a premium for this "barbecue in the box" offering.  At the very least, they will have bought more than they otherwise would have - you made buying easy.

·         Offer volume or frequent buyer discounts.  If you can get your customers to buy more and buy more frequently, reward them with incentives, discounts, extra level of services, etc.  Since you have maximized your cash flow, be willing to reward them with a few extra perks.  Bookstores and airlines have "frequent buyer" programs.  For example, video stores and coffee stores give you a free serving when you buy a certain number of times.

·         Offer other products/services that will complement what you already sell.   Ask the question, "Who else sells something that goes before, after or along with my customer's purchase?"  For example, if you sell computer products, consider selling "technical needs analysis" services on the front-end or installation and computer training services on the back-end.  Be sure it makes economic sense to add such services to your business.

·         Communicate with your customers often and give them buying ideas/solutions via mail, phone, email, newsletters, in-store displays, etc.  For example, if you are a hardware store, and as early fall approaches, use direct mail and in-store displays to communicate to your customers the need to fill cracks and seal coat their driveways.  Sell them on the benefits of taking such action.  Package all the supplies together (sealant, crack filler, broom, gloves, removal cleaner, "how to" booklet, etc.) and offer a single-solution price.

·         Conduct special events to educate your existing customers on your additional service/product offerings.  Do this in an informative manner and in a way that has "their best interests" at heart.  Hold a "sneak preview" for your new products, services, models, etc.  Hold exclusive events for your best customers.  An upscale luxury auto dealer might hold a wine and cheese party with a musical quartet to unveil the newest car models.

·         Endorse other people's products or services to your client list and get a cut of the action.  For example, if you are an upscale jewelry store, consider offering elaborate vacation packages to your customers via an upscale travel agency.  Mail offers to your customer database, endorse the travel agency and their offering, and receive a set percentage of any revenues generated.  Instead of adding computer training to your computer store, form an alliance with a reputable training company and negotiate for a "cut of the action" for introducing/endorsing them to your customers via email, direct mail, telemarketing, etc.  To maintain the goodwill of your customers, make sure you do your "due diligence" and introduce only high-trust, high-integrity, high-value organizations to your customer base.