Wednesday, August 12, 2009

The Icing on the Cake

What compels someone to do business with a certain company? What keeps people coming back? How do you build a rabid, loyal following? Let's take a look at the 3 ways that businesses can grow their revenue:
1. Create new customers. This is by far the most expensive way to grow revenue as you have the acquisition cost. However, if you treat them right they will stay. Why do you think cellular phone companies spend an average of $700 per customer to acquire them? Why does a grocer take out $30,000 worth of ads per week? Getting them in the door is crucial.

2. Create more revenue per transaction. I have a client who is a hair stylist. After we began our coaching, she raised her prices 25%. She lost her lowest paying 5% of clients and still made more money. She also began offering hair products to everyone in the chair. Once she realized that they couldn't shoot her and eat her when offered the opportunity to buy additional product, her revenue went up!

3. Book repeat business and ask for referrals. Every time I get my hair cut I am asked to book my next appointment. What a great way to keep me coming back! Look at any nutritional company or health club. They don't just sell you one bottle of vitamins or a single workout. They will collect from you every month!

The greatest way to keep a client is to create a "Wow" experience. It could be offering them a beverage while waiting in your lobby, sending a card thanking them for their time, or delivering a small gift to them. For additional information and other great information, visit www.theshef.com
For more information about booking The Shef for your next event, visit http://www.theshef.com
or call our offices at 1-800-863-2591.
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