Over the last couple of weeks we have been looking at two critical numbers that any business that wants to increase sales and profitability need to know.
The first one is how many leads you are getting broken down by the source of each lead.
And the second was what is your conversion rate from each type of lead.
The third critical number to know is how often are your customers coming back to buy from you.
For this you will need to know how many customers you have. Your customers should be recorded on a Customer Relationship Management (CRM) system with a lot of relevant information and analysis which will include how often your customers are buying from you.
For many B2B businesses, you will know how many customers you have. There is a much smaller group of B2B businesses that carry out the critical analysis on these customers to find out how often your customers are buying from you on average.
For retail businesses, you should have a constant prize draw (or other strategy) for customers to enter their contact details (and permission to contact them).
Terry Leahy who was CEO of Tesco in 1995 when he introduced the Clubcard for their customers claims that this strategy was a key one in Tesco’s massive growth at this time. All the other supermarkets quickly followed this strategy.
The concept is simple – it is 6 times more expensive to sell to a new prospect than to an existing customer.
Customers who know, like and trust you enough to buy from you are more likely to buy from you again.
Maintaining regular contact with your customers with offers that benefit your customers is critical in getting them to buy from you more often.
On the flip side, when we study why customers leave us, a massive 68% claim that the business they were buying from did not care if they bought or not.
Remember – decisions to buy from you are up to 80% based on emotion. Based on this, you need to demonstrate that you genuinely care about your customers.
Contact me on 087 7431405 or email@example.com – to find out how mastering this critical number can benefit your business.