In part 1 of this series, we looked at the most common way that businesses tend to approach growth – by trying to get more customers. Today, let’s take a look at the second way that companies can boost their business profits – increasing the frequency that current customers buy from you. Contrary to the first way, which involves a huge investment of both time and money to reach these new potential customers, upping purchase frequency is much less involved. Why? Well, your customers already…
It costs anywhere from 5 – 10 times more money to attract a new customer than it does to keep an existing one. So, how can you increase the frequency of transactions for your current customer base? In many businesses, it revolves around keeping your business top of mind and offering special incentives to buy. Groceries stores, for example, rely on this strategy. They send out weekly flyers and other communications of in-store specials, they offer points programs, they have special events in store etc… This is all to encourage their customers to come to them, and not the dozens of other competitors, when it’s time for that grocery shop. It’s a little trickier in the web hosting industry. Customers generally don’t require your products or services all that frequently. They might have monthly recurring charges, which means they never need to go to your website. Here are some tips for increasing purchase frequency:
In part 3, we’ll look at a similar topic – how to get your customers to buy more from you.