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CHAPTER 6 HOW TO GENERATE MILLIONS IN SALES & PROFITS

Getting Your Existing Customers to Keep
Coming Back

Now that you have learnt the strategies of how to generate
more leads, increase your conversion rate and boost your
average dollar purchase, the next profit variable you must
measure and work on is the ‘average number of repeat
purchases’ your customers make.

Do your customers come back after buying from you the first
time? How often do they come back? Of course there are
certain types of products and services that are bought more
regularly than others. For example, if you were selling cars,
you would expect your customers’ to re-purchase far less
regularly than if you were selling petrol.

Nonetheless, highly profitable businesses know that the majority
of their sales should come from their existing customers. While
it costs a lot of money to acquire new customers, it costs merely
a fraction to get an existing customer to come back and make
his next purchase. These great businesses keep track of the
percentage of their customers who return and the average
number of times they buy in a month or a year.

The biggest mistake that most small businesses make is to
focus all their attention on getting new customers and take it
for granted that their old customers will return. These businesses
have got no idea about the average repeat transactions their
customers make. They don’t employ any strategies to ensure
they get their existing customers to re-buy.

Never assume that a customer will return just because you
met their needs the last time. They may easily forget about
you or get distracted by the promotional efforts of one of your
competitors. If they don’t return, it is an absolute waste! After

SECRETS OF BUILDING MULTI-MILLION DOLLAR BUSINESSES 185