Sale Frequency is a topic that can cause headaches for almost every business owner. A client once told me that his main problem was not with his salespeople selling insurance policies, but his client’s retention and renewal. Often we think that retaining a client is much more complicated than acquiring a new one. After all, if we have excellent lead generation strategies and a high conversion rate, clients will be coming periodically to our business, giving us the impression of solid growth.
Apparently, we forget that each client costs money to acquire in the first place (acquisition cost is the one common cost shared by ALL business), and this usually represents a high percentage of the first sale (sometimes it is more than the total profit on the sale). That’s why it is essential to ensure that clients return to purchase again, and also do so on a regular basis.
However, some people argue that it is impossible to do this in some specific industries. Let’s look at two two different cases, the arguments and the way we can address them.
a) “My product is a lifetime unique sale”: A prepaid funeral service saleswoman assured me that she never would make one of her clients return to buy a second prepaid service. Lifetime unique sale products and services (such as burial services and some real estate) do not only have a high margin, but also generate a client database that can be used effectively to sell different products which may not have high margins but where the existing relationship can be used to generate different revenue streams.
b) “My clients will come back only when they need my services”: A doctor justified himself saying that he could not make his patients fall ill periodically. That’s why it was impossible to increase their average frequency of visits. Let’s be realistic, these types of businesses (doctors, mechanics, plumbers, etc.) run the risk that when the client feels the necessity to buy again, they may decide not to rehire the service. For example: a client that is sick has two options other than coming back to the doctor that attended to them last time: (1) to visit ANOTHER DOCTOR or (2) simply to visit NONE. Both options can be avoided by proactive marketing strategies and maintaining regular contact with the database of patients.
It does not matter how difficult it seems, there are numerous ways to help your clients and customers return.
To find out more about client retention and how Business Coaching in South Florida will work for you, contact John at johnlayzell@actioncoach.com or 305-899-9963 for a complimentary coaching session or diagnostic of your business.
John Layzell
