There are only 4 ways you can do this:
Now ignoring item 1 for the time being, as that is a bit of a given………………
Let’s focus on Item 2 – increase your number of transactions
Now what does this mean…………………….basically it means rather than concentrating all your efforts on getting new customers, concentrate on increasing the number of times your current customers come back to you.
For example……….hairdressing customer visits the hairdresser once every 4 months. This is 3 interactions per year. Now if you were able to encourage the customer with new services or more regular treatments and have them come in every 3 months instead of 4, then you have immediately increased your business transactions by 33%.
Sounds simple doesn’t it…………………and it is………..sadly though businesses just don’t do it. Have a think about your existing database, if you have been trading for some time this could now be huge! When was the last time you made contact with each and every one of those customers?
The biggest mistake you can make is ‘assume’ your customer doesn’t want to see you more than they currently do…………that is not a decision for you to make………….your role is to offer your suggestions/invitations of your services/products and they will decide if they engage the transaction.
What is the effect? Is it worth it……………….
Continuing with our example above : hairdressing business currently performs 65 hair appointments per week – average appointment sale is $80 – 2 hairdressers on staff.
On average customers come in 3 times per year for appointments (every 4 months)
If they had 40% of their customers come every 3 months rather than every 4 months, what would the effect on profit be?
Answer…………………………..an extra $ 34,200 profit each year for the business.
Which for this business is a 131% improvement on their profitability.
And this is without getting 1 extra customer…………….powerful isn’t it………
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