how to make more repeat sales
Post on 02-Dec-2014
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HOW TOMAKE MORE
REPEAT SALES
Copyright @ 2014, Ron Ryan & Associates
A Video Presentation From Ron Ryan & Associates
Copyright @ 2014, Ron Ryan & Associates
Customer Touch-Points
Online Sales Process
Sales Center
or Retail Store
Fulfillment & Service
Repeat Purchase
Copyright @ 2014, Ron Ryan & Associates
Repeat Purchase Cycle
Online Process
Sales Center
Or Store
Fulfillment
& ServiceRepeat
Purchase
Copyright @ 2014, Ron Ryan & Associates
Repeat Purchase Cycle
Online Process
Sales Center
Or Store
Fulfillment
& ServiceRepeat
Purchase
Most People Call,Drive or Log on to Make A Repeat Purchase. But NotAlways From You.
Copyright @ 2014, Ron Ryan & Associates
Acquisition Costs Your Results Will
Vary By:IndustryDistribution ChannelCustomer SegmentSeason
New Cus-tomer Sales
Repeat Sales
5
1
Average US CustomerAcquisition Cost
Avg Acqusition Cost
Source: http://www.brandxpress.net/2005/10/brand-loyalty-vs-repeated-purchases/
Copyright @ 2014, Ron Ryan & Associates
Repeat Purchase Cycle
Online Process
Sales Center
Or Store
Fulfillment
& ServiceRepeat
Purchase
Copyright @ 2014, Ron Ryan & Associates
Repeat Purchase Cycle
Online Process
Sales Center
Or Store
Fulfillment
& ServiceRepeat
Purchase
Automatic Sales that bypass your sales department and go automatically to fulfillment are most profitable sales of all.
Copyright @ 2014, Ron Ryan & Associates
There is nothing new about the ‘Subscription Model’
If you subscribe to a newspaper with home delivery, you understand the “Subscription” model.
Copyright @ 2014, Ron Ryan & Associates
Examples of businesses improved by subscription model:
Business Example Vertical (Likely) Victim
Netflix Movie Rental Blockbuster Video
Diapers.com Baby Products Local Retail Grocery Store
Dollarshaveclub.com Men’s Grooming & Toiletries
Local Retail Drug And Grocery Store
Lensdiscounters.com Vision Care Local Retail Vision Care
Petflow.com, mydogbowl.com
Pet Food Local Retail Pet Food
For an excellent summary on key attributes of successful subscription businesses see: http://blog.kissmetrics.com/excel-at-subscription-economy/
Copyright @ 2014, Ron Ryan & Associates
Repeat Purchase Process
Online Sales Process
Sales Center
or Retail Store
Fulfillment & Service
Repeat Purchase
Copyright @ 2014, Ron Ryan & Associates
Repeat Purchase Process
Online Sales Process
Sales Center
or Retail Store
Fulfillment & Service
Repeat Purchase
CommonProblemAreas:
Copyright @ 2014, Ron Ryan & Associates
Repeat Purchase Process
Online Sales Process
Sales Center
or Retail Store
Fulfillment & Service
Repeat Purchase
• No Customer-Level Tracking of Purchases, Preferences or Needs• No Easy or Automatic Means of Repeat Purchase• Incomplete or Inadequate Reseller Follow-up• Wrong Channel Follow-up• Inability to Adapt Offer To Changing Customer Needs• Lack of support for repeat purchase process within company culture.
CommonProblemAreas:
Copyright @ 2014, Ron Ryan & Associates
No Customer-Level Tracking of Purchases, Preferences or Needs Developing a
CRM System:Less about
software; More about
thinking about data your company has; and
What your clients need.
Copyright @ 2014, Ron Ryan & Associates
No Customer-Level Tracking of Purchases, Preferences or Needs Most
companies have more customer data than they think.
Copyright @ 2014, Ron Ryan & Associates
No Customer-Level Tracking of Purchases, Preferences or Needs Email address,
purchases, and purchase timing can be combined in creative ways for follow-up campaigns.
Copyright @ 2014, Ron Ryan & Associates
No Easy or Automatic Means of Repeat Purchase Do you offer an automatic purchase option?
At point of sale?At first repeat or renewal purchase?
Copyright @ 2014, Ron Ryan & Associates
No Easy or Automatic Means of Repeat Purchase
Example of Point of Sale Execution – Water Filter on Amazon.com
Copyright @ 2014, Ron Ryan & Associates
No Easy or Automatic Means of Repeat Purchase Does your billing system currently accommodate
add-ons, upgrades, downgrades, renewals, and suspensions?
Copyright @ 2014, Ron Ryan & Associates
Inadequate Repeat Sales Follow-up
Can your company follow-up with customers after they have made a purchase?
Copyright @ 2014, Ron Ryan & Associates
Email Address Capture Is Critical To Follow-up
Two Point of Sales Examples:Email receipts or Use email for to
give access to special offers
Copyright @ 2014, Ron Ryan & Associates
Inadequate Repeat Sales Follow-up Do you offer loyalty programs?
Copyright @ 2014, Ron Ryan & Associates
Inadequate Repeat Sales Follow-up Do you share part of your acquisition cost
with repeat customers?
Copyright @ 2014, Ron Ryan & Associates
Wrong Channel Follow-up Most people like to
buy and receive follow-up communications in the channel they purchased from.
http://www.varolii.com/Resources/casestudies/FS_Insurance_Retention_CS.aspx
Copyright @ 2014, Ron Ryan & Associates
Wrong Channel Follow-up But moving
customers to automatic purchases always makes economic sense.
http://www.varolii.com/Resources/casestudies/FS_Insurance_Retention_CS.aspx
Copyright @ 2014, Ron Ryan & Associates
Wrong Channel Follow-up Multi-channel follow-
up solutions can be particularly effective.
Copyright @ 2014, Ron Ryan & Associates
Varolli Multi-Channel Communications Technology
Copyright @ 2014, Ron Ryan & Associates
Multi-Channel Retention Improvement Project
• 10 Percent Improvement in Customer Retention;
• 84 Percent Reduction in CSR Costs;
• Millions of Dollars to the Carrier’s Bottom Line.
For insurance example see: http://www.varolii.com/Resources/casestudies/FS_Insurance_Retention_CS.aspx
Copyright @ 2014, Ron Ryan & Associates
Inability to Adapt Offer To Changing Customer Needs• Most businesses get it wrong the first time.
Source: Hartford, Tim, Adapt: Success Always Start With Failure, Ferrar, Strauss, Giroux. New York. (2011).
Copyright @ 2014, Ron Ryan & Associates
Inability to Adapt Offer To Changing Customer Needs• Building feedback loops helps to evolve your
company’s offer.
Source: Hartford, Tim, Adapt: Success Always Start With Failure, Ferrar, Strauss, Giroux. New York. (2011).
Copyright @ 2014, Ron Ryan & Associates
Inability to Adapt Offer To Changing Customer Needs• Organizations can only adapt by allowing employees to
test, modify and improve the offer.
Source: Hartford, Tim, Adapt: Success Always Start With Failure, Ferrar, Strauss, Giroux. New York. (2011).
Copyright @ 2014, Ron Ryan & Associates
Lack of Support for Repeat Purchase Process Early growth in
young companies is about new clients.
Copyright @ 2014, Ron Ryan & Associates
Lack of Support for Repeat Purchase Process Shareholders, and
executives reward initiatives that drive this growth.
Copyright @ 2014, Ron Ryan & Associates
Lack of Support for Repeat Purchase Process
Investment in client retention and repeat purchases lags due to lack of internal support.
Copyright @ 2014, Ron Ryan & Associates
Lack of Support for Repeat Purchase Process And yet repeat
purchases are the most profitable…
Copyright @ 2014, Ron Ryan & Associates
Summary – 5 Important Steps for Growing Repeat Sales
1. Explore your customer data and develop it – you have more than you think.
2. Explore ways of making your first sale a repeat sale. Do this at the point of sale.
3. Find ways of bringing existing customers back in contact with you through targeted emails and calls. Use a multi-channel approach if you can.
4. Be sure to give enough autonomy to allow employees to experiment and adapt your offer to customers needs.
5. Do not allow your company’s cultural biases against repeat sales choke your initiatives.
Copyright @ 2014, Ron Ryan & Associates
Repeat Purchase Cycle
Online Process
Sales Center
Or Store
Fulfillment
& ServiceRepeat
Purchase
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