Some people love to explore their choices and buy from different stores every time they get out to shop. Then there are consumers who only visit limited stores. These consumers are willing to buy from their favourite sellers even if they have cheaper alternatives or tempting deals available at other stores. We call them “loyal customers”.
While new customers are a good sign for your business and absolutely worth your time to focus on, at the end of the day you want sales, and your existing customers are the biggest source of it. Keeping your existing customers not only increases the chances that you will keep generating sales and revenue from them in the future, but those loyal customers also serve as your free brand ambassadors. Based on what these people say about your business on social networks, you can bring in new business and generate more leads than you would otherwise.
With that in mind, here are a few effective practices to increase customer spending per visit.
Stay in Touch
One of the easiest ways to lose a customer is to pretend like they do not exist after they complete their first purchase at your store. Remember that customers have plenty of alternatives out there; if they do not feel cared and valued after a sale has been completed, chances are they will choose another store for future purchases. That said, it makes sense to follow up with existing customers frequently by providing unique benefits or something of value and not just asking to make a purchase.
When marketing to existing customers, be sure to engage them through low-pressure or less salesy conversations. You already have their preference, so instead of convincing them to buy from you again, you must focus on strengthening your relationship with them and target them with personalised messages based on your prior interactions with each customer.
Address Customer Needs and Pain Points
Even during such challenging economic times, customers continue to spend on things they need. Maintaining personalised interactions with customers will allow you to understand their problems and their needs. Since you have already gained the trust of your existing customers, they are more likely to be open about their problems and needs. Moreover, you can analyse past purchases and customer demographics to recognise potential problems.
Once you have a good understanding of your customers’ needs and pain points, you can better position your marketing campaigns and budget to drive maximum value for customers. By addressing their needs and bringing relief to these pain points through a product or service, you can encourage your existing customers to spend more, generating better revenue for your business.
For instance, if your customer’s current concern is mainly financial, highlighting the features of your product or explaining the increased return on the investment (ROI) the customer will experience after purchasing your service, will encourage them to invest in your product/service.
Update Your Offerings
A growing business demands change in offerings. You do not want to continue buying stocks of products that rarely sell. The items that are largely overlooked by your customers are costing you money in ways you may not realise. Least selling products also create a clutter for your business if you already have a large inventory.
Your experience along with consistent analysis will tell you the products/services that bring you good return on investment and the ones that should be discontinued. Your existing customers will help you determine where opportunities exist and where you can cut down. The rule of thumb is to offer enough options to interest customers without offering too much to overwhelm. With just enough number of choices, it would be easier for customers to make purchase decisions.
Implement Cross-sell and Upsell
Existing customers offer great upsell and cross-sell opportunities to marketers. You have already generated sales through their first purchase, won their trust and established a relationship with them. This means your existing customers have a favourable opinion about your business. Now it is time to tell them what else you can do for them without seeming salesy or spending extra money.
Upselling is a popular marketing technique to increase customer spending per transactions. In other terms, an upsell occurs when you encourage a customer to spend more than they planned. For instance, if you offer housekeeping service and a customer buys your weekly cleaning package, you can upsell to them by suggesting a cleaning package with more rooms. This way, you can increase the average order value, making more money without having to spend extra money.
A cross-sell, on the other hand, happens when you offer a different but related products/services to customers instead of offering the same kind of product/service with a high profit margin. Let say you run a salon; you may cross-sell a hair colour or hair straightening service to a customer who regularly gets a haircut at your salon or maybe suggest they buy the same haircare products that you used on their hair in the salon.
Though they work differently, both upselling and cross-selling techniques focus on driving sales by recommendations. These marketing techniques are quite effective when marketing to existing customers. The more valued and cared the customers feel, the more likely they are to return and spend more on your business.
Build a Strong Loyalty Program
Customers are more likely to return and spend more than they planned when they know their seller cares about them. By incentivising or rewarding customers for choosing your business, you are setting up your business for repeat purchases. To have customers coming back to your store, you need to build loyalty. Give your existing customers exclusive access to special sales or allow them to try out a premium, high-priced product before other customers. This will not only make your customers feel special and a valued part of your business, but also help test your new product or service that you are about to launch. Also note that loyal customers are far less sensitive to higher prices than irregular or completely new customers.
One of the most common forms of loyalty programs are reward points. Reward points are usually offered every time a customer makes a purchase. Once the customer has a certain number of points in their account, they can redeem those points to get a reward, a free item or a discount. This develops loyalty amongst your existing customers and keep them from visiting your competitors to fulfill their requirements. In addition, even customers that are not too frequent in your store will be more likely to remember your brand if they have discounts in their accounts waiting for them.
Not all your customers would be high rollers, but these tips will certainly help you turn customers who shop from you once or twice in months into someone who regularly purchases from your store. Your existing customers give you better opportunities to repeat sales and generate profits as they already trust your brand and are more likely to buy from you than your prospects.
If you are looking for more ways to boost sales from your existing customers while also driving new customers without spending money on a whim, the digital marketing specialists at Inbound Leads can build a robust strategy for your business. Not only do we specialise in PPC advertising in Australia, but we usually provide our clients with a combination of services like display marketing and social media marketing to help them reach the right audience with the right copy at the right time.