Don’t Think Follow Up, Service and Quality Are Enough to Earn Repeat Business

Articles – Maximize Top Line Revenue
Articles
Maximize Top Line Revenue

Don’t Think Follow Up, Service and Quality Are Enough to Earn Repeat Business

I agree with the experts who say that the acquisition of new customers costs six times what it costs to retain existing customers. I also agree that businesses need to follow up and to invest in great customer service and excellent quality.

What I don’t agree with is that these are the BEST ways to grow revenue from existing buyers.

Follow up: Sure, say thank you and we appreciate your business and other nice sentiments. For most customers, these efforts are the minimum, and therefore do not guarantee repeat business.

Customer service: Since customer service is expected as part of the sale, it doesn’t really lead to repeat business. As long as there are other choices, your customer service is not a meaningful differentiator.

Quality: Quality is too often lost in the quest for faster and cheaper. You can stand out pretty easily. However, quality is related to the past purchase and doesn’t lead to significant repeat business.

What DOES generate repeat business from existing buyers?

The surest way to keep revenue coming in from current buyers is by offering them new products and/or services. The newer and more different your offerings are, the higher the revenue you’ll get from your current buyers.  Base your new offerings on your knowledge of your buyers’ values, feelings and buying triggers.

Think in terms of a curve that goes up from left to right. The highest point on the right side of the curve is your highest value. I call this the Growth and Opportunity (GO) Curve.

  • When your offerings are consumables, you’ll generate more repeat business by offering higher value options.
  • When your offerings are durable, generate repeat business with offerings that enhance the enjoyment of the durable item, increase its value or provide an intangible such as convenience or prestige.
  • If your business typically meets one-time needs, create other offerings that are consumable to maximize the relationship you made while filling the one-time need. This is particularly cost-effective compared to continuously recruiting new buyers with one-time needs.

It takes creative thinking and quick, strong execution to generate repeat business that also grows your revenue and profit. I think these qualities reside in the people in every business-they just have to be brought to light by leadership’s words and deeds. What are you doing to prompt the people in your business to create offerings for existing buyers that generate new and higher revenue and profits?