If you want your small business to become more profitable, you must increase your share of wallet. In other words, you have to take action to help ensure that your customers buy more from you.
Here are five tips to get you on the right track:
1. Reward Loyalty
Ask yourself: Do customers have an incentive to return to your store or e-commerce site? If not, it may be time to introduce a rewards card or loyalty program. For example, a coffee shop may offer a punch card that rewards customers with a free doughnut after 10 drink purchases. These types of loyalty programs are easy to implement in a small business.
2. Focus on Your Best Clients
Pareto's Principle dictates that 80 percent of your business will come from 20 percent of your customers, as Forbes notes. Based on this principle, you should strive to determine which customers make up the 20 percent that gives you the most business, and then work to discover what additional actions you can take to make their lives easier. This can be as simple as offering individual members of this target group a customizable variation of your current goods and services. By incorporating this level of personalization into your business model, you can further encourage return visits.
3. Offer Discounts on Bulk Purchases
Few shoppers can pass up a good deal. As such, a great way to encourage customers to buy more is to offer them a discount on bulk purchases. For example, you can offer a five-for-the-price-of-four deal on your best-selling product.
4. Upsell (Think: "Would You Like Fries With That?")
No matter what your customer has just purchased, you should always encourage him or her to buy an additional, related item or service. If a customer is investing in a new pair of heels, you can nudge her in the direction of the matching handbag. If a customer just bought a new widget, you can highlight the fact that you offer an annual service package. By providing these customers with more and more options to add on to each of their purchases, you can increase your share of wallet.
5. Utilize an In-Depth Marketing Strategy to Attract New Customers
To truly excel in your industry, you must constantly strive to acquire new customers. As such, it's important to research when and where to spend your marketing and advertising dollars. Doing so can help ensure that your products and services are in front of the consumers who are most likely to need them. Strategically placed social media campaigns, billboards and print ads can help increase your sales.
For the best results, you should focus your attention and efforts on just one or two strategies at a time, and track your results. If a particular strategy works well, you should stick with it. If it doesn't, you should try something else to boost your sales.
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