“Lifetime value is the total value of a customer’s business over the lifetime of their relationship with your company. The more a customer purchases from you and the longer they stay with your, the more valuable that customer is to your business” – Josh Kauffman the personal MBA
That is how you turn a £100 sale into £1200 then £12000 etc at no extra cost! Maximising the lifetime value of each customer.
Every successful business owner will tell you that the secret to business growth is repeat sales to repeat customers. Repeat sales are the single easiest way of increasing your business revenues.
Imagine what your business would look like if you retained all the clients you worked so hard to get? The less people drop off your radar, the quicker you’ll be able to accelerate your business growth.
Today I’m sharing some strategies that will help you generate more repeat sales in your business by creating a more loyal customer base.
Like the sound of this?
Lets dig in.
1. Be devoted to your customers
You are in business because you offer a solution to your customer’s problems. The more committed you are to seeing them solve their problems the more committed they will be to you as their provider of choice.
2. Encourage and Reward loyalty and repeat business
This is an effective way of encouraging repeat business. Let the customers doing repeat business know that you appreciate their custom. It shouldn’t always come in the form of a discount (how long can you keep reducing your prices) but it can come in the form of a gift or something that would be of immerse value to the customer and would generate word of mouth referrals. E.g. How many things have you not heard the story of someone being unexpected upgraded to first class or gotten a free products due to amassed loyal points?
2. Be positive and encourage positivity
People like being around positive, cheerful and optimistic people. It is less tiring. Even though you may not be in the motivational business, always seek the opportunity to contribute positively to the mental well being of your customers. Learn to offer kind words as your go about your business. Your customers will be grateful for that. A thank you or smile goes and long way.
4. Create an active community
An active community provides extra support to your customer retention activities. The more interactive and engaging the community is, the better it is for all involved. You could have a mix of free or paid versions of such communities to suite all budgets and people’s needs. Social media has made this relatively easy to implement. Pick a platform and make it easy for people to join in.
5. Be accessible
People are short of time. In the struggle to get more done, they make themselves less available to their customers and all customer facing work is delegate to the most junior and inexperienced member. This is ok for managing resources but if I’m paying you loads of money and have been a customer for a couple of years, then I expect something better. I want to know that I can get a senior person on the phone if I need to. Be the company whose clients know they can reach out to you when things are tough. Your senior support team or even yourself will be there to help.
6. Encourage referrals and trading between your customers
I have been in networks and associations where trade is forbidden amongst members for various reasons. I get the reasoning behind that (in cases where you have questionable characters) but I believe people are adults and should be able to make decisions on who they want to trade with. So leave the option to your customers. Introduce businesses that you trust and believe will complement your business and leave the option to them.
7. Follow up
This is something that you’ve probably heard and read a lot on already but there is no substitute for a good follow up strategy. Leaving your clients and prospects cold is not only a bad thing but it will affect your ability to grow your business. Emails are a cheap and free way of following up.
8. Be transparent and honest
People like to do business with people they like and trust. So when things go wrong, (which they will from time to time) be honest and own up to your faults. You are less likely to alienate your customers when you are truthful and admit you got it wrong. People can be quite forgiving if they like you.
9. Stand for a cause
Find a local charity or cause to support. Contribute to the community that you are in. That could make all the difference when a socially conscious customer is trying to decide between you and a competitor.
10. Create a system and work the system
The key to implementing these ideas is to fine-tune it all into a system that works for you. Make it part of your business’ DNA. You and your staff should seek every opportunity not only to make a sale but also to create and encourage loyalty and devotion to your brand.
What is better in business than a constant flow of customers who come back time and time again.
So what do you think of all this? What is your experience been?