23:34
Faizan
Every business needs customers. Our business would fail without them. But only focusing on customer acquisition is a short sighted strategy. Sure, you should keep building your customer base, but you should also focus on your existing customers too. What is the average spend of a customer? Do you have other products and services to offer? It is much easier to sell to an existing customer than to continually keep looking for new ones.
Back End Products
If you have a range of products and services which you can sell to existing customers, you can increase your income quickly, simply by promoting them. By focusing on your 'back-end' products you can easily increase your income, without having to chase down new customers all the time.
Companies like Amazon are experts at this. Have you noticed that whenever you purchase from them they also offer you a range of other products which people have bought with that same product? McDonald's do this across all their stores too. If you don't hear "Do you want fries with that?" after your order, someone is going to get fired! I That's because McDonald's and Amazon know that by applying the strategy of an up-sell they can dramatically increase their profits across the board.
Price Hike
You can also test a price increase with your products. Just a small shift in pricing can have dramatic effects on your business. Many business owners are scared to try this because they don't want to scare off their loyal customers. But look at banks and utility companies. Mobile phone companies also do this all the time.
No sooner have you entered into a deal with them and you're getting a price hike. The reason: it works. People are often too busy to change providers, so they accept the changes. By testing a small price change of even only 10% you can determine what flexibility you have in your pricing.
Back End Products
If you have a range of products and services which you can sell to existing customers, you can increase your income quickly, simply by promoting them. By focusing on your 'back-end' products you can easily increase your income, without having to chase down new customers all the time.
Companies like Amazon are experts at this. Have you noticed that whenever you purchase from them they also offer you a range of other products which people have bought with that same product? McDonald's do this across all their stores too. If you don't hear "Do you want fries with that?" after your order, someone is going to get fired! I That's because McDonald's and Amazon know that by applying the strategy of an up-sell they can dramatically increase their profits across the board.
Price Hike
You can also test a price increase with your products. Just a small shift in pricing can have dramatic effects on your business. Many business owners are scared to try this because they don't want to scare off their loyal customers. But look at banks and utility companies. Mobile phone companies also do this all the time.
No sooner have you entered into a deal with them and you're getting a price hike. The reason: it works. People are often too busy to change providers, so they accept the changes. By testing a small price change of even only 10% you can determine what flexibility you have in your pricing.
Posted in: internet
