This week we look at Part 2 of 7 Strategies to Generate More Business.
Today we are going to examine 4 strategies that are simple to implement that will generate new business, increase business from your existing client base and build repeat business. Let us remind you that you may not be able to use all of them in your business but you can certainly use some of them.
Packaging Different Products or Services Together
This is a marketing strategy usually used to increase the average purchase size in a business. I recently saw an example of bundling in a book store. The book was called “How to Buy Property – Cheaply” and sold for $32:95. They store was also selling an audio CD called “Property and the Law – How to Save on Legals” and it sold for $29:95. Packaged together they were selling for $49:95 – quite a saving. I ask the store manager about the sales of the products and she indicated that they sold roughly a third each.
You’ve probably seen this strategy used in the Health and Fitness markets. You pay say $300 for a membership that entitles you to use the Gyms facilities for X amount of times over X period rather than paying for each individual visit.
This same idea can apply to many different businesses and it even presents an interesting opportunity for the small business owner to raise operating capital. with this strategy, capital can actually be raised from customers by collecting in advance for future purchases.
Let’s use a restaurant as an example. The restaurant owner could sell membership cards good for 10 meals anytime from a selected menu for $249. If purchased one at a time the total cost may be $300. So by purchasing the card in advance the customer saves about $50. You may also want to tie in preferential reservations on short notice or offer some other bonus such as free parking or discount vouchers to your partner businesses. If the restaurant sells 50 of these memberships, that’s over $12,000 up front to put back into the business as you see fit.
The Acceptance of Major Credit Cards
Every business should consider accepting Mastercard, VISA, American Express and Diners Club. Of course retail stores, online marketers and restaurants almost HAVE to honour these cards, but just about any business should.
Businesses including Doctors, Lawyers, tradesmen and professionals of all shapes and sizes should use credit cards as a way to increase their business, implement price increases with less client resistance and reduce collection problems. The concept is quite simple – the easier you make it for your customers to buy and the more payment options you offer the customer the better.
Other extended credit options via finance facilities are growing in popularity outside of the traditional car, furniture, health equipment, computer and white goods suppliers. It may be worth considering offering this facility in your market.
Regular Contact with Past & Present Customers
One of the most effective marketing strategies that any business can use to build customer loyalty, retain customers and to stimulate more frequent purchasing is the publication and distribution of direct mail. A monthly newsletter is an extremely powerful, cost effective marketing method. When you keep in touch with your clientele via your newsletter you do all of these valuable things.
1. You create a habit on the part of your customers. They expect to receive your newsletter and they get in the habit of reading it.
2. You remain top mind for your category.
3. You can pass along useful information and ideas that you customer appreciate.
4. You can continue to demonstrate your expertise in your field.
5. You can stimulate word-of-mouth advertising
6. You can advertise sales, special offers, new products, new services, new locations and anything you feel is relevant, adds value to your customer and increases the experience of doing business with you.
Now that you have these 7 strategies that can help you stimulate new business, increase business from existing customers and build repeat business, you need to give some thought into how to use them effectively. We will look closer at implementing these strategies in later editions so stay tuned. So you don’t miss any of this series or any of the blog posts, make sure you subscribe to updates via the RSS link at the bottom of the page.
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