Create unique offers to get

Knowing this, we spend a ton of money on our websites. We get everything on there that the customer could possibly want and then some! To further drive traffic and sales to our sites, we might even do some online advertising. However, in our dogged pursuit to acquire more customers, we often forget that we have existing customers who already know us, who have bought from us and who might be willing to buy again.

A Bird In The Hand Is Worth Two In The Bush

In fact, the cost to keep an existing customer is far lower than the cost to acquire a NEW customer. We all know that “retaining an existing customer is only about 10% of the cost of acquiring a new customer” but some of us still seem to place our efforts on acquiring new customers. According to a report by the Harvard Business School, a five percent increase in customer retention can boost profits by 25% to 85%. So why don’t we focus on our existing customers?

Existing customers are known to spend more per sale, buy more often, and refer other customers – yes that’s right, they do your marketing for you! All this at a lower cost per sale! And the longer they keep buying, the more valuable they become. This is known as the lifetime customer value (LCV).

LCV = (sales per customer) x (estimated number of times the customer will reorder) x (number of referrals) x (percentage of referrals that become customers) – (cost of sales)

As you can see, focusing on existing customers and ensuring that you provide long-term customer satisfaction is well worth it. When you get repeat business, its money in the bank!

Five steps that you can take to maximize your share of your customer’s wallet:

1. Be A Packrat

   Capture data on your customer. Know who they are and how they got to your site. Record what they bought and when they bought it. Keep everything just in case you need it later. You may not initially know what’s useful so don’t delete anything.

2. CSI: Customer Retention

   Like the forensic scientists on CSI who solve crimes by studying the evidence, you can study your sales data to determine what types of products were purchased by the customer in the past. Use this to forecast what they would most likely buy next. Did they purchase a particular genre of DVD? Track that. Did they make smaller purchases during the week and larger purchases during the holidays? Knowing what they did in the past will help predict what they might do in future. Of course, you can influence the behaviour by offering an incentive.

3. Dangle That Carrot

   Create unique offers to get

   Stationery Supplies
   Stationery Supplies refers to all those items of stationery that could be used in business, office, home or school. To cater to such a vast segment of customers, shops selling these Stationery Supplies need a large assortment of items to be readily available with them. At times, the stationery suppliers even tend to provide printing and customization services to their clients.The Stationery Supplies business is very lucrative, due to its consistent demand. Since there are a huge number of items that can be categorized under Stationery Supplies, some suppliers have opted to supply a particular type o
   ales to our sites, we might even do some online advertising. However, in our dogged pursuit to acquire more customers, we often forget that we have existing customers who already know us, who have bought from us and who might be willing to buy again.

   A Bird In The Hand Is Worth Two In The Bush

   In fact, the cost to keep an existing customer is far lower than the cost to acquire a NEW customer. We all know that “retaining an existing customer is only about 10% of the cost of acquiring a new customer” but some of us still seem to place our efforts on acquiring new customers. According to a report by the Harvard Business School, a five percent increase in customer retention can boost profits by 25% to 85%. So why don’t we focus on our existing customers?

   Existing customers are known to spend more per sale, buy more often, and refer other customers – yes that’s right, they do your marketing for you! All this at a lower cost per sale! And the longer they keep buying, the more valuable they become. This is known as the lifetime customer value (LCV).

   LCV = (sales per customer) x (estimated number of times the customer will reorder) x (number of referrals) x (percentage of referrals that become customers) – (cost of sales)

   As you can see, focusing on existing customers and ensuring that you provide long-term customer satisfaction is well worth it. When you get repeat business, its money in the bank!

   Five steps that you can take to maximize your share of your customer’s wallet:

   1. Be A Packrat

      Capture data on your customer. Know who they are and how they got to your site. Record what they bought and when they bought it. Keep everything just in case you need it later. You may not initially know what’s useful so don’t delete anything.

   2. CSI: Customer Retention

      Like the forensic scientists on CSI who solve crimes by studying the evidence, you can study your sales data to determine what types of products were purchased by the customer in the past. Use this to forecast what they would most likely buy next. Did they purchase a particular genre of DVD? Track that. Did they make smaller purchases during the week and larger purchases during the holidays? Knowing what they did in the past will help predict what they might do in future. Of course, you can influence the behaviour by offering an incentive.

   3. Dangle That Carrot

      Create unique offers to get

      Adjust Your Expectations
      You've all heard some business owners whine about employees: "my staff members are always coming to work late", "my employees' children are always getting sick", "I have high employee turnover". Why do some owners not whine? Maybe they have looked at their employees and adjusted to the obvious. If the owner is habitually late, your employees will be, too. If your employees are mostly young parents, yes their children will be sick. Look at your employment package and then work with your employees to see how you can customize it within your company's budget. This attention may help solve the retention
      eport by the Harvard Business School, a five percent increase in customer retention can boost profits by 25% to 85%. So why don’t we focus on our existing customers?

      Existing customers are known to spend more per sale, buy more often, and refer other customers – yes that’s right, they do your marketing for you! All this at a lower cost per sale! And the longer they keep buying, the more valuable they become. This is known as the lifetime customer value (LCV).

      LCV = (sales per customer) x (estimated number of times the customer will reorder) x (number of referrals) x (percentage of referrals that become customers) – (cost of sales)

      As you can see, focusing on existing customers and ensuring that you provide long-term customer satisfaction is well worth it. When you get repeat business, its money in the bank!

      Five steps that you can take to maximize your share of your customer’s wallet:

      1. Be A Packrat

         Capture data on your customer. Know who they are and how they got to your site. Record what they bought and when they bought it. Keep everything just in case you need it later. You may not initially know what’s useful so don’t delete anything.

      2. CSI: Customer Retention

         Like the forensic scientists on CSI who solve crimes by studying the evidence, you can study your sales data to determine what types of products were purchased by the customer in the past. Use this to forecast what they would most likely buy next. Did they purchase a particular genre of DVD? Track that. Did they make smaller purchases during the week and larger purchases during the holidays? Knowing what they did in the past will help predict what they might do in future. Of course, you can influence the behaviour by offering an incentive.

      3. Dangle That Carrot

         Create unique offers to get

         Teaching The Big Boys To Think Small
         Last week I told you about a recent report from The Conference Board that has a lot of big company CEOs concerned about competition from smaller, more innovative and entrepreneurially-minded companies. To refresh your memory, The Conference Board's CEO Challenge 2004 reported that 87% of the 540 global businesses surveyed cited innovation and enabling entrepreneurship as priorities for their companies, and 31% considered these issues of "greatest concern."These CEOs understand that their big company status no longer guarantees that they will win contracts and retain market share based solely on the
         tomers) – (cost of sales)

         As you can see, focusing on existing customers and ensuring that you provide long-term customer satisfaction is well worth it. When you get repeat business, its money in the bank!

         Five steps that you can take to maximize your share of your customer’s wallet:

         1. Be A Packrat

            Capture data on your customer. Know who they are and how they got to your site. Record what they bought and when they bought it. Keep everything just in case you need it later. You may not initially know what’s useful so don’t delete anything.

         2. CSI: Customer Retention

            Like the forensic scientists on CSI who solve crimes by studying the evidence, you can study your sales data to determine what types of products were purchased by the customer in the past. Use this to forecast what they would most likely buy next. Did they purchase a particular genre of DVD? Track that. Did they make smaller purchases during the week and larger purchases during the holidays? Knowing what they did in the past will help predict what they might do in future. Of course, you can influence the behaviour by offering an incentive.

         3. Dangle That Carrot

            Create unique offers to get

            Is Your Job Becoming Extinct? Here's What To Do
            Job growth--or lack of it--and the levels of unemployment continue to confuse obtuse government analysts and the Wall Street crowd.Why? They are ignoring the dramatic effect of rapidly-increasing self-employment.Recently, the weekly number of unemployed declined, but the number of newly-created jobs was very small. How could that happen when there were not enough new jobs created that week?Simple. More and more people are becoming self-employed, no longer wanting, needing and even seeking jobs.One reason: many kinds of American jobs are an endangered species
            tion

            Like the forensic scientists on CSI who solve crimes by studying the evidence, you can study your sales data to determine what types of products were purchased by the customer in the past. Use this to forecast what they would most likely buy next. Did they purchase a particular genre of DVD? Track that. Did they make smaller purchases during the week and larger purchases during the holidays? Knowing what they did in the past will help predict what they might do in future. Of course, you can influence the behaviour by offering an incentive.

         4. Dangle That Carrot

            Create unique offers to get your existing customers to buy again. Don’t just give a discount; offer something that benefits not only your customer, but their referral as well. Create sample opportunities. You can even do this with services – offer a special consultation or provide added information. If you’ve updated your site with content, products or services that your customer might find useful, let them know.

         5. If You Liked That, You’re Gonna Love This!

            According to a Deloitte and Touche study, the odds of selling a product to a new customer are 15%, whereas the odds of selling a product to an existing customer are 50%. Unless you are content with being a mere order taker, you should take the time to understand your customer and their needs. You can then offer related products or services – they’ve bought from you once so it would be relatively easy for them to buy from you again. If you don’t have related products or services that you can use to cross-sell, refer your customers to companies that offer complementary products or services.

         6. Would You Like Fries With That?

            Don’t wait until the customer has already checked out – offer them an opportunity to purchase another item or better quality product or service at the time they are placing their order. Upsell when you've got them ready to buy. Maybe a special price that is only available at the time of checkout. We all love a bargain don’t we?

         Instead of spending time and resources trying to acquire more and more new customers, we should focus on keeping our existing customers happy. We will retain them longer and they will reward us by buying more. Understanding the lifetime customer value can result in repeat sales.

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