How To Make More Repeat Sales

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Post on 02-Dec-2014

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This presentation by a leading change consultant explores five reasons both for profit and not-for-profit companies experience customer and member churn. The presentation also provides insights on how to address these issues in your organization.

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1. A Video Presentation FromRon Ryan & AssociatesCopyright @ 2014, Ron Ryan & Associates 2. Customer Touch-PointsOnline SalesProcessSales Centeror RetailStoreFulfillment &ServiceRepeatPurchaseCopyright @ 2014, Ron Ryan & Associates 3. Repeat Purchase CycleOnlineProcessSalesCenterOr StoreFulfillment& ServiceRepeatPurchaseCopyright @ 2014, Ron Ryan & Associates 4. Repeat Purchase CycleOnlineProcessSalesCenterOr StoreFulfillment& ServiceRepeatPurchaseCopyright @ 2014, Ron Ryan & AssociatesMost People Call,Drive or Log on toMake A RepeatPurchase. But NotAlways From You. 5. Acquisition Costs Your Results WillVary By: Industry Distribution Channel Customer Segment Season5Average US CustomerAcquisition CostAvg Acqusition Cost1NewCustomerSalesRepeatSalesSource: http://www.brandxpress.net/2005/10/brand-loyalty-vs-repeated-purchases/Copyright @ 2014, Ron Ryan & Associates 6. Repeat Purchase CycleOnlineProcessSalesCenterOr StoreFulfillment& ServiceRepeatPurchaseCopyright @ 2014, Ron Ryan & Associates 7. Repeat Purchase CycleOnlineProcessSalesCenterOr StoreFulfillment& ServiceRepeatPurchaseCopyright @ 2014, Ron Ryan & AssociatesAutomatic Sales thatbypass your salesdepartment and goautomatically tofulfillment are mostprofitable sales of all. 8. There is nothing new about theSubscription Model If you subscribe toa newspaper withhome delivery, youunderstand theSubscriptionmodel.Copyright @ 2014, Ron Ryan & Associates 9. Examples of businessesimproved by subscriptionmodel:Business Example Vertical (Likely) VictimNetflix Movie Rental Blockbuster VideoDiapers.com Baby Products Local Retail GroceryStoreDollarshaveclub.com Mens Grooming &ToiletriesLocal Retail Drug AndGrocery StoreLensdiscounters.com Vision Care Local Retail VisionCarePetflow.com,mydogbowl.comPet Food Local Retail PetFoodFor an excellent summary on key attributes of successful subscriptionbusinesses see: http://blog.kissmetrics.com/excel-at-subscription-economy/Copyright @ 2014, Ron Ryan & Associates 10. Repeat Purchase ProcessOnline SalesProcessSales Centeror RetailStoreFulfillment &ServiceRepeatPurchaseCopyright @ 2014, Ron Ryan & Associates 11. Repeat Purchase ProcessOnline SalesProcessSales Centeror RetailStoreFulfillment &ServiceRepeatPurchaseCopyright @ 2014, Ron Ryan & AssociatesCommonProblemAreas: 12. Repeat Purchase ProcessOnline SalesProcessSales Centeror RetailStoreFulfillment &ServiceRepeatPurchase No Customer-Level Tracking of Purchases, Preferences or Needs No Easy or Automatic Means of Repeat Purchase Incomplete or Inadequate Reseller Follow-up Wrong Channel Follow-up Inability to Adapt Offer To Changing Customer Needs Lack of support for repeat purchase process within companyculture.Copyright @ 2014, Ron Ryan & AssociatesCommonProblemAreas: 13. No Customer-Level Tracking ofPurchases, Preferences or Needs Developing aCRM System: Less aboutsoftware; More aboutthinking aboutdata yourcompany has;and What yourclients need.Copyright @ 2014, Ron Ryan & Associates 14. No Customer-Level Tracking ofPurchases, Preferences or Needs Mostcompanieshave morecustomer datathan they think.Copyright @ 2014, Ron Ryan & Associates 15. No Customer-Level Tracking ofPurchases, Preferences or Needs Email address,purchases, andpurchase timingcan becombined increative ways forfollow-upcampaigns.Copyright @ 2014, Ron Ryan & Associates 16. No Easy or Automatic Meansof Repeat Purchase Do you offer an automatic purchase option? At point of sale? At first repeat or renewal purchase?Copyright @ 2014, Ron Ryan & Associates 17. No Easy or Automatic Meansof Repeat Purchase Example of Point of Sale Execution Water Filteron Amazon.comCopyright @ 2014, Ron Ryan & Associates 18. No Easy or Automatic Meansof Repeat Purchase Does your billing system currently accommodateadd-ons, upgrades, downgrades, renewals, andsuspensions?Copyright @ 2014, Ron Ryan & Associates 19. Inadequate Repeat Sales Follow-up Can your company follow-up with customersafter they have made a purchase?Copyright @ 2014, Ron Ryan & Associates 20. Email Address Capture IsCritical To Follow-up Two Point of SalesExamples: Email receipts or Use email for togive access tospecial offersCopyright @ 2014, Ron Ryan & Associates 21. Inadequate Repeat Sales Follow-up Do you offer loyalty programs?Copyright @ 2014, Ron Ryan & Associates 22. Inadequate Repeat Sales Follow-up Do you share part of your acquisition costwith repeat customers?Copyright @ 2014, Ron Ryan & Associates 23. Wrong Channel Follow-up Most people like tobuy and receivefollow-upcommunications inthe channel theypurchased from.http://www.varolii.com/Resources/casestudies/FS_Insurance_Retention_CS.aspxCopyright @ 2014, Ron Ryan & Associates 24. Wrong Channel Follow-up But movingcustomers toautomatic purchasesalways makeseconomic sense.http://www.varolii.com/Resources/casestudies/FS_Insurance_Retention_CS.aspxCopyright @ 2014, Ron Ryan & Associates 25. Wrong Channel Follow-up Multi-channel follow-upsolutions can beparticularly effective.Copyright @ 2014, Ron Ryan & Associates 26. Varolli Multi-ChannelCommunications TechnologyCopyright @ 2014, Ron Ryan & Associates 27. Multi-ChannelRetentionImprovementProject 10 PercentImprovement inCustomerRetention; 84 PercentReduction in CSRCosts; Millions of Dollarsto the CarriersBottom Line.For insurance example see:http://www.varolii.com/Resources/casestudies/FS_Insurance_Retention_CS.aspxCopyright @ 2014, Ron Ryan & Associates 28. Inability to Adapt Offer To ChangingCustomer Needs Most businesses get it wrong the first time.Source: Hartford, Tim, Adapt: Success Always Start With Failure, Ferrar, Strauss, Giroux. NewYork. (2011).Copyright @ 2014, Ron Ryan & Associates 29. Inability to Adapt Offer To ChangingCustomer Needs Building feedback loops helps to evolve yourCopyright @ 2014, Ron Ryan & Associatescompanys offer.Source: Hartford, Tim, Adapt: Success Always Start With Failure, Ferrar, Strauss, Giroux. NewYork. (2011). 30. Inability to Adapt Offer To ChangingCustomer Needs Organizations can only adapt by allowing employees totest, modify and improve the offer.Source: Hartford, Tim, Adapt: Success Always Start With Failure, Ferrar, Strauss, Giroux. NewYork. (2011).Copyright @ 2014, Ron Ryan & Associates 31. Lack of Support for RepeatPurchase Process Early growth inyoung companiesis about newclients.Copyright @ 2014, Ron Ryan & Associates 32. Lack of Support for RepeatPurchase Process Shareholders, andexecutives rewardinitiatives that drivethis growth.Copyright @ 2014, Ron Ryan & Associates 33. Lack of Support for RepeatPurchase Process Investment in client retention and repeatpurchases lags due to lack of internal support.Copyright @ 2014, Ron Ryan & Associates 34. Lack of Support for RepeatPurchase Process And yet repeatpurchases are themost profitableCopyright @ 2014, Ron Ryan & Associates 35. Summary 5 Important Stepsfor Growing Repeat Sales1. Explore your customer data and develop it you have more than you think.2. Explore ways of making your first sale arepeat sale. Do this at the point of sale.3. Find ways of bringing existing customersback in contact with you through targetedemails and calls. Use a multi-channelapproach if you can.4. Be sure to give enough autonomy to allowemployees to experiment and adapt youroffer to customers needs.5. Do not allow your companys cultural biasesagainst repeat sales choke your initiatives.Copyright @ 2014, Ron Ryan & Associates 36. Repeat Purchase CycleOnlineProcessSalesCenterOr StoreFulfillment& ServiceRepeatPurchaseCopyright @ 2014, Ron Ryan & Associates