What Hank Understands About Customers That Would Benefit Your Internet Business
Hank has an office supply business, and has been in business in the same place for sixteen years. Although the town around him has changed, and the economy has had its ups and downs, Hank has steadily grown his business throughout the years. If you asked him how he did it, he would say he understands the following about customers.
Hank understands that you market to bring in new customers and bring back old ones. In the beginning, Hank spent a huge chunk of his capital getting customers; now he spends less, but more creatively. At first, Hank needed to brand himself and distinguish himself from the others in town who provided office supplies. Now that his name is better known, Hank spends more on nurturing relationships and expressing appreciation. Each year during the holidays, a huge list of people are invited out to the store, where Hank himself is handing out barbecue sandwiches and hot cider. There are chocolate Santas for the kids, and a food donation bin for the local shelter. The event is always a big hit, gets a lot of press, and warms the hearts of customers old and new.
During the normal course of business, Hank understands the value of an upsell. When a customer is buying a printer, he is asked if he wishes to add copy paper and extra ink with the purchase. For convenience sake, many do. When a customer purchases a desk, many times he can be sold on the value of a desk set for pens and paper clips. Hank trains his salespeople to see the connection between items and help sell the connection to the customer.
Hank understands the lifetime worth of a customer. He does not view each purchase in a vacuum, but instead realizes that a customer who is buying a fax machne/printer will need ink cartridges and paper on an ongoing basis. Hank markets to get that customer back in his store for those ongoing purchases by staying in con Read the rest of this post »
