How do you hold onto a customer for longer, so they buy from you more often?
Twenty years ago, my marketing mentor, Dan Kennedy, taught me, there are three ways to increase revenue in your business.
- Generate new customers
- Increase transaction size
- Improve customer purchase frequency.
Number one, generating new customers is what most businesses focus on. It’s the most expensive way to increase revenue. It takes the most time and energy getting new customers.
Increasing transaction size, number 2. One question saved McDonalds from bankruptcy in the 1980’s. After customers placed their order, they taught their cashiers to ask, “Would you like fries with that?” That order bump increased margins.
McDonalds improved on that strategy by creating “value meals.” Today, menus lead with packaged meals. Today, they so ubiquitous at fast food restaurants few remember we all ordered a la cart hamburger, fries and a drink a couple of decades ago. Today, we glance at the board for the meal we want and give it’s number. All maintaining that transaction size for that restaurant.
As an aside: How can you apply packaging into your business? Should you be grouping your services into packages rather than selling a la carte?
Back to today’s topic, the most important revenue growth strategy of all, it’s the cheapest to implement and has the largest possible positive impact on your business.
Number three on our list, getting your customers to buy from you more frequently.
Existing customers already trust you, they know where to find you and understand what you offer. Sales from existing customers can instantly multiply and scale your business faster than any other strategy.
However, there’s a lot out there on customer retention and it can be a challenge to implement it all.
This episode of Be Unleavable® Subscription Growth reveals 3 customer retention hacks that can give you the fastest possible opportunities to grow your revenue, especially during high inflation and a possible recession.
📖 What I’m reading:
I finished reading the best book I’ve picked up in a long time, Two Heads: A Graphic Exploration of How Our Brains Work with Other Brains.
This book brings a lot of things to the surface, that happens within our brains automatically. Thus, during much of the book you may think, “so what?”
The magic is in the awareness. Neuroscience has now documented decision making on our own and when working with other people.
By becoming aware of the processes involved we can be a lot more intentional about making those interactions go well. This book gives you insights into winning support for your decisions and perhaps even getting your family to go along with what you want more often.
Plus, the book is fun to read because it’s written like a comic book. A geeky, 300-page comic book. Grab the book, you’ll be glad you did. It’s now my #1 gift idea for the people around me.
🧠 What I’m pondering:
How would you act if this was the last time you’d do this in your life?
In his song, “Live Like You Were Dying,” Tim McGraw sings, extolls the virtue of:
“Someday I hope you get the chance
To live like you were dying”
There’s a freedom from petty fears and a greater appreciation of the time you have and the people you share it with. All that plus fewer compromises.
While I’ve enjoyed that song many times I’ve never fully internalized the lessons.
In this moment, I don’t remember where I saw it. But lately, I came across the advice to do each thing in your life as if it’s the last time you were going to do it in your life.
How would you say goodbye to a loved one if it was the last time? How would you appreciate a phone call, meal or sunset?
As much as possible I’ve been going about my work, client interactions and family life as if this was the last time I’d speak with them or do that activity. I’ve enjoyed the freedom, peace and appreciation this approach creates.