How To Make More Repeat Sales
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This presentation by a leading change consultant explores five reasons both for profit and not-for-profit companies experience customer and member churn. The presentation also provides insights on how to address these issues in your organization.
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How To Make More Repeat Sales
- 1. A Video Presentation From Ron Ryan & Associates Copyright @ 2014, Ron Ryan & Associates
- 2. Customer Touch-Points Online Sales Process Sales Center or Retail Store Fulfillment & Service Repeat Purchase Copyright @ 2014, Ron Ryan & Associates
- 3. Repeat Purchase Cycle Online Process Sales Center Or Store Fulfillment & Service Repeat Purchase Copyright @ 2014, Ron Ryan & Associates
- 4. Repeat Purchase Cycle Online Process Sales Center Or Store Fulfillment & Service Repeat Purchase Copyright @ 2014, Ron Ryan & Associates Most People Call, Drive or Log on to Make A Repeat Purchase. But Not Always From You.
- 5. Acquisition Costs Your Results Will Vary By: Industry Distribution Channel Customer Segment Season 5 Average US Customer Acquisition Cost Avg Acqusition Cost 1 New Customer Sales Repeat Sales Source: http://www.brandxpress.net/2005/10/brand-loyalty-vs-repeated-purchases/ Copyright @ 2014, Ron Ryan & Associates
- 6. Repeat Purchase Cycle Online Process Sales Center Or Store Fulfillment & Service Repeat Purchase Copyright @ 2014, Ron Ryan & Associates
- 7. Repeat Purchase Cycle Online Process Sales Center Or Store Fulfillment & Service Repeat Purchase Copyright @ 2014, Ron Ryan & Associates Automatic Sales that bypass your sales department and go automatically to fulfillment are most profitable sales of all.
- 8. There is nothing new about the ‘Subscription Model’ If you subscribe to a newspaper with home delivery, you understand the “Subscription” model. Copyright @ 2014, Ron Ryan & Associates
- 9. Examples of businesses improved by subscription model: Business Example Vertical (Likely) Victim Netflix Movie Rental Blockbuster Video Diapers.com Baby Products Local Retail Grocery Store Dollarshaveclub.com Men’s Grooming & Toiletries Local Retail Drug And Grocery Store Lensdiscounters.com Vision Care Local Retail Vision Care Petflow.com, mydogbowl.com Pet Food Local Retail Pet Food For an excellent summary on key attributes of successful subscription businesses see: http://blog.kissmetrics.com/excel-at-subscription-economy/ Copyright @ 2014, Ron Ryan & Associates
- 10. Repeat Purchase Process Online Sales Process Sales Center or Retail Store Fulfillment & Service Repeat Purchase Copyright @ 2014, Ron Ryan & Associates
- 11. Repeat Purchase Process Online Sales Process Sales Center or Retail Store Fulfillment & Service Repeat Purchase Copyright @ 2014, Ron Ryan & Associates Common Problem Areas:
- 12. Repeat Purchase Process Online Sales Process Sales Center or Retail Store Fulfillment & Service Repeat Purchase • No Customer-Level Tracking of Purchases, Preferences or Needs • No Easy or Automatic Means of Repeat Purchase • Incomplete or Inadequate Reseller Follow-up • Wrong Channel Follow-up • Inability to Adapt Offer To Changing Customer Needs • Lack of support for repeat purchase process within company culture. Copyright @ 2014, Ron Ryan & Associates Common Problem Areas:
- 13. No Customer-Level Tracking of Purchases, Preferences or Needs Developing a CRM System: Less about software; More about thinking about data your company has; and What your clients need. Copyright @ 2014, Ron Ryan & Associates
- 14. No Customer-Level Tracking of Purchases, Preferences or Needs Most companies have more customer data than they think. Copyright @ 2014, Ron Ryan & Associates
- 15. No Customer-Level Tracking of Purchases, Preferences or Needs Email address, purchases, and purchase timing can be combined in creative ways for follow-up campaigns. Copyright @ 2014, Ron Ryan & Associates
- 16. No Easy or Automatic Means of Repeat Purchase Do you offer an automatic purchase option? At point of sale? At first repeat or renewal purchase? Copyright @ 2014, Ron Ryan & Associates
- 17. No Easy or Automatic Means of Repeat Purchase Example of Point of Sale Execution – Water Filter on Amazon.com Copyright @ 2014, Ron Ryan & Associates
- 18. No Easy or Automatic Means of Repeat Purchase Does your billing system currently accommodate add-ons, upgrades, downgrades, renewals, and suspensions? Copyright @ 2014, Ron Ryan & Associates
- 19. Inadequate Repeat Sales Follow-up Can your company follow-up with customers after they have made a purchase? Copyright @ 2014, Ron Ryan & Associates
- 20. Email Address Capture Is Critical To Follow-up Two Point of Sales Examples: Email receipts or Use email for to give access to special offers Copyright @ 2014, Ron Ryan & Associates
- 21. Inadequate Repeat Sales Follow-up Do you offer loyalty programs? Copyright @ 2014, Ron Ryan & Associates
- 22. Inadequate Repeat Sales Follow-up Do you share part of your acquisition cost with repeat customers? Copyright @ 2014, Ron Ryan & Associates
- 23. Wrong Channel Follow-up Most people like to buy and receive follow-up communications in the channel they purchased from. http://www.varolii.com/Resource s/casestudies/FS_Insurance_Re tention_CS.aspx Copyright @ 2014, Ron Ryan & Associates
- 24. Wrong Channel Follow-up But moving customers to automatic purchases always makes economic sense. http://www.varolii.com/Resource s/casestudies/FS_Insurance_Re tention_CS.aspx Copyright @ 2014, Ron Ryan & Associates
- 25. Wrong Channel Follow-up Multi-channel follow-up solutions can be particularly effective. Copyright @ 2014, Ron Ryan & Associates
- 26. Varolli Multi-Channel Communications Technology Copyright @ 2014, Ron Ryan & Associates
- 27. Multi-Channel Retention Improvement Project • 10 Percent Improvement in Customer Retention; • 84 Percent Reduction in CSR Costs; • Millions of Dollars to the Carrier’s Bottom Line. For insurance example see: http://www.varolii.com/Resources/casestud ies/FS_Insurance_Retention_CS.aspx Copyright @ 2014, Ron Ryan & Associates
- 28. Inability to Adapt Offer To Changing Customer Needs • Most businesses get it wrong the first time. Source: Hartford, Tim, Adapt: Success Always Start With Failure, Ferrar, Strauss, Giroux. New York. (2011). Copyright @ 2014, Ron Ryan & Associates
- 29. Inability to Adapt Offer To Changing Customer Needs • Building feedback loops helps to evolve your Copyright @ 2014, Ron Ryan & Associates company’s offer. Source: Hartford, Tim, Adapt: Success Always Start With Failure, Ferrar, Strauss, Giroux. New York. (2011).
- 30. Inability to Adapt Offer To Changing Customer Needs • Organizations can only adapt by allowing employees to test, modify and improve the offer. Source: Hartford, Tim, Adapt: Success Always Start With Failure, Ferrar, Strauss, Giroux. New York. (2011). Copyright @ 2014, Ron Ryan & Associates
- 31. Lack of Support for Repeat Purchase Process Early growth in young companies is about new clients. Copyright @ 2014, Ron Ryan & Associates
- 32. Lack of Support for Repeat Purchase Process Shareholders, and executives reward initiatives that drive this growth. Copyright @ 2014, Ron Ryan & Associates
- 33. Lack of Support for Repeat Purchase Process Investment in client retention and repeat purchases lags due to lack of internal support. Copyright @ 2014, Ron Ryan & Associates
- 34. Lack of Support for Repeat Purchase Process And yet repeat purchases are the most profitable… Copyright @ 2014, Ron Ryan & Associates
- 35. Summary – 5 Important Steps for Growing Repeat Sales 1. Explore your customer data and develop it – you have more than you think. 2. Explore ways of making your first sale a repeat sale. Do this at the point of sale. 3. Find ways of bringing existing customers back in contact with you through targeted emails and calls. Use a multi-channel approach if you can. 4. Be sure to give enough autonomy to allow employees to experiment and adapt your offer to customers needs. 5. Do not allow your company’s cultural biases against repeat sales choke your initiatives. Copyright @ 2014, Ron Ryan & Associates
- 36. Repeat Purchase Cycle Online Process Sales Center Or Store Fulfillment & Service Repeat Purchase Copyright @ 2014, Ron Ryan & Associates
Notes de l'éditeur
- This deep dive section covers Repeat Purchases and how to have more of them. It reviews in detail six common challenges that we have found hold organization’s back in their efforts to retain customers. We explore the sources of the problem as well as best practices in addressing these challenges.
- Let’s put examine repeat purchases in the context of all the customer touch points – the online sales, telephone sales, retail sales, customer service or fulfillment.
- Retail experts estimate that the average US Company loses 50 percent of its customers every five years. That pencils in at a 13% annual loss of customers every year
- Most People Call, Drive or Log on to Make A Repeat Purchase. But NotAlways From You
- Repeat sales, those with little or no new customer acquisition cost, are especially profitable ones for most companies. http://www.brandxpress.net/2005/10/brand-loyalty-vs-repeated-purchases/
- Results will vary by industry, distribution channel, customer type, and season, but it is estimated that it costs four to six times as much to attract a new customer as it does to retain an old one – so repeat sales, those with little or no new customer acquisition cost, are particularly profitable ones for most companies. Automatic Sales that bypass your sales department and go automatically to fulfillment are most profitable sales of all. http://www.brandxpress.net/2005/10/brand-loyalty-vs-repeated-purchases/
- So if repeat sales are more profitable, and potentially game changing in customer facing industries, why don’t more companies exploit this opportunity?
- Here are some reasons we have found companies don’t make as many repeat sales as they might:
- We’ll take review each of these issues one at a time…
- You do need a customer relationship management system, but please don’t be intimidated by the word or what you think it represents if you don’t have one. This is less about software and more about thinking about what data you have and what your clients need.
- Customer email addresses, purchases, and purchase timing can be combined in creative ways for follow-up campaigns. Telephone numbers from in-bound calls can be correlated with purchase data as well.
- Here’s a clever example of how you can increase your subscription sales on your website by offering automatic repeat purchases of a routine item. Now you’re offering a product AND a service.
- Most daunting among these challenges is monthly billing that provides flexibility for the constant changes of billed amounts in subscription businesses. Fortunately, a cottage industry has emerged providing systems support for subscription businesses. Zuora is a new entrant to the space while several traditional payment processing companies have entered the space as well. (See our resource section.) The bottom line, you don’t have to reinvent this wheel yourself.
- Gathering customer information at point of sale opens doors for follow-up. Developing systems that email receipts or use email for special offers allow this to happen.
- Loyalty programs are another avenue to develop repeat purchases --- here are a few from my wallet.
- Here’s a discount punch card from one of my favorite local coffee shops. Loyalty Programs needn’t extravagant, costly or technically difficult. Most of us are cheap enough to relish a free something or other as a reward for coming back. Sometimes its enough just to be acknowledged as a customer.
- A great example of multi-channel follow-up comes from systems provider Varoli Corporation. Its client, a direct to consumer auto insurer was having difficulty retaining its 18-35 clientele who forgot to pay premiums and allowed their policies to lapse. By communicating using email, telephone, and text message with the consumer to remind them to pay their insurance premiums, and taking payments via credit card using automated systems, they were able to increase retention by ten percent while reducing their CSR calling costs by 80 percent.
- Lets face it, most businesses don’t get it right the first time. That goes for everyone from Federal Express to Microsoft. The trick is to find that combination of price, service, and delivery that makes customers come back.
- Gathering customer data and paying attention to what it tells you is an important first step.
- The second is to use that data to test, modify, and improve your offer. And make this a company habit.
- New companies are used to thinking about NEW customers.
- Shareholders, and executives are used to rewarding initiatives that drive this growth.
- Investment in client retention and repeat purchases therefore tends to lag due to lack of internal support from the more powerful executives in the company – making the retention initiative the black sheep of the organization.
- Retention and repeat sales initiatives therefore need nurture and support at the highest level of the organization if they are going to succeed. Your company’s long term survival may depend on it.
- This concludes our Deep Dive Presentation on how to improve repeat sales in your organization. We realize that this presentation only scratches the surface of initiatives that your company can take to improve its repeat sales and customer retention. Be sure to check out some of our other presentations on how to improve your online sales process, telesales, or customer service and fulfillment, in you company or not-for-profit. Thank you for listening.