Increase profit strategy

As a small business owner, do you know how often your customers purchase from your business? Most small business owners do not pay much attention to how often their customers buy from them due to their limited resources and capability. Many just ignore the importance of knowing how often their customers walk into their store and buy something.

There is a very important issue that all business owners must know, if you cannot measure, you cannot manage. Many small business owners spend countless of their money to promote their businesses, products and or services, but they never create a systematic way of retaining their customers. Customers saw their advertisement or promotion brochure, buy the thing they wanted and leave without a trace.

As a small business owner, you need to know that your acquisition cost is the fixed whether you have one or one thousand new customers from your promotion campaign. However, the more they buy; the lower will be your average acquisition cost per customer. Better still, the more often they buy from you, the lesser will be your average marketing and promotion cost. Remember, every dollar you save will add an immediate dollar to your profit.

Open up your wallet; you will probably have a few membership rewards cards apart from your credit or bank cards. What do these cards serve? Some of them give you a fixed discount on your future purchase, some offer rewards points where you can redeem gifts, Some offer both but the all have one aim and one aim only, that is to remind you to keep buying from them instead of their competitor. People need reminder more than to inform. So as small business owner, what can you learn from this big corporation? You need to have a systematic way of reminding your customers to keep coming back to you than to your customers. Start by going through your customers' base and check how frequent your regular customers buy from you. And if you do not have a customers' data base, it is high time you must create one for your future expansion of your business.

Imagine, what would be your profit like when you can attract your customers who buy from you once a year to twice a year, you immediately double up your sales revenue from this group of customers. What if you can attract those who buy once a month from you to buy twice from you even with a incentive scheme such as a frequency discount, your business will still generate a steady flow of revenue with spend much on marketing promotion to attract new customers. Less cost means more profit, and more frequency means more income for your business, thus more profit.

Starting today, see how you can attract your existing customers to buy more frequently from you. Increase the frequency, increase your profit.

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