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How to Increase the number of Transactions, Average $ Sale and your Margins

Once you have leads that are making their first purchase from your online business, you must work with these new customers to make the most out of this business relationship. The old saying goes, that "it's much easier and cheaper to sell to existing customers than it is to new customers". Therefore, you must leverage your time and efforts to maximize the amount of profit potential from each and every customer.

You have two options here. You Can have a business that is always advertising and "buying" new customers, who generally buy just once from you (a very expensive way to go). Or, you can build your list of customers, nurture this list, and reap the rewards (profits) for years to come. These customers are going to spend their cash somewhere ...why not give them good reasons to spend it with you.

Ok, so let's look at a few easy ways to boost the number of transactions from each customer.

The first method is free and extremely effective ... it's "Under Promise and Over Deliver". Why is this so effective? Because hardly anyone practises this ... so when you apply this with your customers, they will be blown away. This is where the WOW factor comes in. Always say what you mean and mean what you say. Don't make false promises or over-exaggerate. Go the extra mile for your customers and they will be back again, over and over.

Always look for opportunities to offer your customers excellent value. Keep asking yourself, "how can I serve and help my customers better?' Rather than always trying to push your products on your customers, offer them free tips, advice, info or gifts every now and then. You may think this is all too much wasted effort, but in the long run it will be easier, more effective and you will make more sales. Keep following up with them and don't forget to say Thank You for their business.

It goes without saying that your home business should offer EXCELLENT value products and services that your customers need. If they aren't excellent ... don't sell them. Your customers are only going to be disappointed and then they will go somewhere else to spend their money. Ordinary products are just plain boring and won't inspire another purchase. They have to be excited and delighted, so make that your aim.

Now, let's look at increasing the average $ sale. The best way is to package together a few related, valuable products and sell for a premium price. If You Are offering a great deal, people will only be too happy to pay extra for what they get.

Consider increasing your prices across the board for all your products. Now most business owners will resist that, thinking that they will lose out on sales. But if you're offering great service, great products and you only raise the price by, say $2, it's unlikely that you will miss out on sales. And just imagine selling 1,000 products at $2 extra ... that's $2,000 extra profit for zero extra work and expense. That's what I call leverage. Sell on the benefits and value of your products, not on the price. Stop discounting and value add instead.

Finally, you need to work on increasing your margins and reducing your costs to boost your bottom line. Continually monitor your costs. Set budgets for all your expenditure. Track your ads and stop running ads that don't work. Don't forget to reduce discounting and increase prices a little. Set your business and marketing plan and stick to it, while always being open to improve.

It's all the little things that add up to make a HUGE difference to your bottom line profits. Just keep applying it on a consistent basis.

andrew jones

View all articles by andrew jones

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This entry was posted on Friday, November 25th, 2011 at 10:44 pm and is filed under Disco CDs. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.