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Digg it UP - How to Squeeze More Profit Out of Your Customers!
The first job the individual lands after graduation could lead to better opportunities in the future. If after how many years the employee sees no growth in the company, perhaps it is time to do an executive job search before leaving the current position.The first thing the executive should do is update that resume. This is because the one who will interview the person does not know anything except what is written on that document.It should contain the positions held in previous jobs, the length of time that the executive has been there, the nature of the work and the major accomplishments. Those who don’t know how to make a resume can use the wizard function in word or ask someone else to edit and polish it.The applicant should remember that a poorly written resume will make job hunting more
So how does this work? Let’s take your customer Bodgit Ltd. You go through their purchasing history (from the database you have now set up!) and you see that every 6 weeks or so, they re-order. But some months there are gaps, suggesting that they may go to competitors on some occasions. Make a note in your diary for one week before you would expect them to order again. When the time comes, pick up the phone and say, “Mr Smith, I imagine you must be getting low on widgets? Would you like me to send
Executive gifts used to be a nice pen or a nice meal, today it's more common to give a Tag Heuer or Baume and Mercier Watch or Swarofski Crystal. If you think business is tough take a look at what's happening in the executive gift and promotional products market.When people used to think promotional products for their business, they advertised on a pen or calendar and got a great return on their money in the 60's and 70's. With the 80's and the explosion of corporate wealth more was expected. Wall street bonuses were frequently dolling out BMW's, Porsche's, Ferrari's, Rolex's and other expensive gifts. Those in the promotional product industry jumped on this trend. They convinced high end luxury manufacturers and distributors that they were missing out on a huge growing market. With business deals today run
The biggest mistake businesses make is to focus all their marketing effort and budget on getting new customers. Research has shown that it costs up to 6 times more to get a new customer than to retain or sell to an existing one. And this is the key. Concentrate on selling more to your existing clients. Simple! Squeezing more profit out of your customer base is a cost-effective way of increasing your bottom line.
So, let’s look at the steps you can take to tease more profit from your client base.
Pareto’s Law
No doubt you have heard of Pareto’s Law? You may know it better as the 80/20 rule. In a sales context if you examine your sales pattern, you may find that 80% of your profit comes from only 20% of your customers. While the percentages may vary slightly, as a principle it generally holds true. Yes, it may come as a bit of shock to find out that most of your profit comes from a handful of customers, but armed with this information you can now create a plan to earn more profit!
So, the first step to squeezing out more profit is to identify your top 20% profitable customers. Obviously, to do this you have to have a database, which keeps track of who orders what and how much. What? You don’t? Keeping track of your customer’s dealings with you is essential. Get a database up and running … today! The effort in setting this up and keeping it up to date will be quickly paid back.
Get them buying more often
Having identified your top earners, the next step is to focus on how you can get them to buy more frequently. Increasing their ordering frequency may sound a bit simplistic but that’s the beauty of it … it is! The trick works especially well if you are in the retail or supply business. The idea is to catch the customer in advance of them needing your product or service and offer it either before they know they require it, or before they go to a competitor.
So how does this work? Let’s take your customer Bodgit Ltd. You go through their purchasing history (from the database you have now set up!) and you see that every 6 weeks or so, they re-order. But some months there are gaps, suggesting that they may go to competitors on some occasions. Make a note in your diary for one week before you would expect them to order again. When the time comes, pick up the phone and say, “Mr Smith, I imagine you must be getting low on widgets? Would you like me to send
Approach your IT marketing and advertising with a multi-pronged approach. Think about your retirement account or your investment portfolio. Would you really want to put all of your money into one stock? You probably wouldn't have wanted it to be Anderson or Enron! As you'll learn in this article, you don't want to put all of your marketing eggs in one basket.IT Marketing: Don't Be Seduced by a Sales PitchPeople get seduced by a sales pitch from a friendly advertising person, whether it's for direct mail, or the Yellow Pages, or some other type of advertising vehicle. They don't have an idea of what they want to do marketing-wise over the next six to 12 months. They don't really have a marketing budget or a marketing plan, and then they end up becoming overly dependent or overly weighted in that p
So, let’s look at the steps you can take to tease more profit from your client base.
Pareto’s Law
No doubt you have heard of Pareto’s Law? You may know it better as the 80/20 rule. In a sales context if you examine your sales pattern, you may find that 80% of your profit comes from only 20% of your customers. While the percentages may vary slightly, as a principle it generally holds true. Yes, it may come as a bit of shock to find out that most of your profit comes from a handful of customers, but armed with this information you can now create a plan to earn more profit!
So, the first step to squeezing out more profit is to identify your top 20% profitable customers. Obviously, to do this you have to have a database, which keeps track of who orders what and how much. What? You don’t? Keeping track of your customer’s dealings with you is essential. Get a database up and running … today! The effort in setting this up and keeping it up to date will be quickly paid back.
Get them buying more often
Having identified your top earners, the next step is to focus on how you can get them to buy more frequently. Increasing their ordering frequency may sound a bit simplistic but that’s the beauty of it … it is! The trick works especially well if you are in the retail or supply business. The idea is to catch the customer in advance of them needing your product or service and offer it either before they know they require it, or before they go to a competitor.
So how does this work? Let’s take your customer Bodgit Ltd. You go through their purchasing history (from the database you have now set up!) and you see that every 6 weeks or so, they re-order. But some months there are gaps, suggesting that they may go to competitors on some occasions. Make a note in your diary for one week before you would expect them to order again. When the time comes, pick up the phone and say, “Mr Smith, I imagine you must be getting low on widgets? Would you like me to send
The start of the summer can be a singularly stressful time of the year. Just as soon as the exams end you have to find a job, at the same time as everybody else! So what can you do to tip the balance back in your favour?Firstly, make sure that your CV is well-written and up-to-date. There are thousands of books and websites overflowing with CV writing advice. The major jobsites such as Monster are a prime example and if you find the CV writing process too daunting you can even employ a professional CV writer to do it for you.To be taken seriously you should always introduce yourself with a covering letter addressed directly to the hiring manager. If the job ad doesn't give a contact name then it's always worthwhile phoning the company to find out for yourself.(Some companies are
So, the first step to squeezing out more profit is to identify your top 20% profitable customers. Obviously, to do this you have to have a database, which keeps track of who orders what and how much. What? You don’t? Keeping track of your customer’s dealings with you is essential. Get a database up and running … today! The effort in setting this up and keeping it up to date will be quickly paid back.
Get them buying more often
Having identified your top earners, the next step is to focus on how you can get them to buy more frequently. Increasing their ordering frequency may sound a bit simplistic but that’s the beauty of it … it is! The trick works especially well if you are in the retail or supply business. The idea is to catch the customer in advance of them needing your product or service and offer it either before they know they require it, or before they go to a competitor.
So how does this work? Let’s take your customer Bodgit Ltd. You go through their purchasing history (from the database you have now set up!) and you see that every 6 weeks or so, they re-order. But some months there are gaps, suggesting that they may go to competitors on some occasions. Make a note in your diary for one week before you would expect them to order again. When the time comes, pick up the phone and say, “Mr Smith, I imagine you must be getting low on widgets? Would you like me to send
Many people who run a full-service carwash remember that their business is very labor-intensive and therefore they spent a lot of time worrying about management and rightfully so. What kind of management advice can I give to a carwash business after being in the carwash business for 27 years?Well, I believe it is important to look at the service business of the carwash as a manufacturing type business instead. Consider if you will it is pure production. The more cars you wash, the more efficiently you wash them and a less cost you use while washing them; the more money you make.What is the difference if you are building a car along the an assembly line or you are taking a car and washing it to remove God's dirt and put back on the ground where God had intended it be? When Henry Ford came along and bu
Get them buying more often
Having identified your top earners, the next step is to focus on how you can get them to buy more frequently. Increasing their ordering frequency may sound a bit simplistic but that’s the beauty of it … it is! The trick works especially well if you are in the retail or supply business. The idea is to catch the customer in advance of them needing your product or service and offer it either before they know they require it, or before they go to a competitor.
So how does this work? Let’s take your customer Bodgit Ltd. You go through their purchasing history (from the database you have now set up!) and you see that every 6 weeks or so, they re-order. But some months there are gaps, suggesting that they may go to competitors on some occasions. Make a note in your diary for one week before you would expect them to order again. When the time comes, pick up the phone and say, “Mr Smith, I imagine you must be getting low on widgets? Would you like me to send
Your resume is your sales document. It tells the world of your achievements, capabilities and roles you have enjoyed. It should standalone and represents you well. To impress your potential employers there are a few guidelines that will help you create an amazing resume.Create a captivating covering letter – use friendly language, refer to the job advertised and allow some of your personality to show through this document.Don’t present it in plastic folders – these are bulky and expensive and your interviewer will discard the unsuccessful applicants anyway. Keep it simple, clean and stapled.Keep it short – no more than 2-3 pages maximum. Only refer to the past 10 – 15 years experience of your career, regardless of how long you have been working.Keep it relevant
So how does this work? Let’s take your customer Bodgit Ltd. You go through their purchasing history (from the database you have now set up!) and you see that every 6 weeks or so, they re-order. But some months there are gaps, suggesting that they may go to competitors on some occasions. Make a note in your diary for one week before you would expect them to order again. When the time comes, pick up the phone and say, “Mr Smith, I imagine you must be getting low on widgets? Would you like me to send your usual amount or do you need more?”
“Wow” thinks Mr Smith, “This company is sharp!” Result? One happy customer; an order that may have gone to your competitor comes to you; one extra cheque to bank! Have a think about how you can apply this technique to your business. Try it out.
Increase the average order value
As well as getting your customer to buy more often, why not get them to spend more? They may be buying one product from you, but a complimentary product, which you also supply, from a competitor. Be bold; ask him for a bigger share of the pie! Try to resist cutting your margins to secure a deal but instead, see if you can tailor the product to meet his needs. Can you change your delivery system? Can you provide better after-sales service. Explore all these avenues to see how you can get more business. If you do have to cut your margins, work out how much overall extra profit you will get if the average order value goes up.
If you have an extensive range of products, you may be surprised to find out that some of your customers are not aware of the full extent of your range. Part of your strategy to squeeze out more profit should be to ensure your customer knows what you sell! When did you last call with your customer with the sole aim of chatting through your range of goods or services? You could be amazed by how little they know!
Talk to them
Too often the only contact a business has with its clients is when they receive an order. The customer hears nothing until the next order is sent in. To get your profitable customers to do more business, find any excuse you can to talk to them. Make an effort to contact them on a regular basis. Ask them what they want from you? What do you have to do to increase business with them? Would a new addition to your line fit in with what they want? Question, question, question! Even if nothing comes out of your conversations immediately, at least they know you are interested in them. This all builds loyalty to you and your business.
Love them!
As well as taking the time to pick up the phone and ask for more business, why not just call to say hello? A call to check levels of service, and to see if everything is okay, can still reap benefits.
If you sp
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