I’ve said it many times: the purpose of a business isn’t to increase sales. It’s to make a profit.
In fact, increasing sales can hurt business when you’re ill-equipped to deal with the growth and those sales cause you to lose money.
Thankfully, there’s a way to increase sales and profits without adding expenses and stress, and it’s to increase the lifetime value of your current customers.
Now, you’re probably thinking, “Well, how do I get my current customers to come back more?”
And it’s not nearly as difficult as it might sound. Here’s what you should do:
Identify Your Best Customers
The 80/20 rule states that roughly 80% of a company’s sales come from roughly 20% of its customers. Find out which customers make up your top 20% and create systems and procedures that focus on selling to them.
Remember, these are the people who like, know, and trust you most, which makes them much more likely to buy from you again.
The best part? This isn’t going to cost you very much, if anything. It’s significantly cheaper to sell to an existing customer than it is to acquire a new customer!
Create a Frequent Buyer Program
Studies show that customers spend more money with companies that incentivize multiple purchases.
One of the most common examples of this is the classic punch card you can probably find at your local coffee shop, which might earn you a free coffee after buying ten.
Regardless of your market, industry, or product line, there’s likely a way to implement one of these programs in your own business!
Upsell Your Most Complementary Products
Can many of your products and services be used together? Make sure your customers know about them!
Amazon has mastered this. As you’re checking out, they will usually display complementary products with a caption along the lines of, “Customers who bought this also bought this.”
And if you’re anything like me, you’ve probably added an extra item or two to your cart!
Offer Bundles That Boost the Average Order Size
In addition to upselling complementary products, you can bundle these items for a slightly discounted price.
I typically advise against offering discounts, as doing this will lower your profit per unit, but in this case, it will help you bring in more profit overall!
Script Possible Cross-Sales of Other Products
When a client comes in for tax work, I’ll ask whether they also need profit coaching or sales consulting. Make sure your employees know to do this, too! Create a script and train your staff to use it so that cross-selling becomes second nature for your business.
Training their employees to ask, “Do you want fries with that?” has helped McDonald’s increase their sales per customer countless times!
Educate Customers About Your Products and Services
Don’t assume your customers know everything about your business. They may have bought from you once, but chances are that there are all types of products and services they don’t know about!
Remember, an educated customer buys more. But be careful not to talk their ear off. Emphasize the benefits! How does the product or service make their life better or easier?
Roll Out Products Tiers
Customers like to be in control. They like options! By creating product tiers, you’re creating more opportunities to buy.
Although most customers will opt for the middle tier, offering a lower tier could help you close extra sales, and a higher tier could help you increase the sale amount!
Pitch Pricier (and Better!) Alternatives
A customer might come in with a particular product in mind, but maybe you have a higher-ticket item that is a better fit.
Don’t just give them what they think they need. Make sure you direct toward the better option!
Make a Habit of Checking in with Your Top Customers
The best businesses stay in touch with past customers. The goal here isn’t to sell something every time you connect but rather to grow the relationship and keep your business top of mind.
This way, when a customer does need one of your products or services, they’ll come right to you!
Raise Your Prices…Yes, Really!
Most business owners claim they can’t increase prices, but I’ve only seen the opposite. Once they finally muster up the courage to raise their prices, they’re shocked to find out that there’s virtually no pushback!