Thursday, September 10, 2009

Does Your Business Have A Recurring Revenue Stream?

The one-timer buyers! The premium bandits! They stalk your business! Sifter Offer after Sifter Offer! They get the great deals and then it’s see you later alligator. You incentivize like crazy and you still can’t beat them: “Them”, as in the proverbial competitors. What’s their magic touch, you ask? Well, stop trying to beat them and redefine the playing field! Why fight in shark-infested waters when you can simply transform the game. If you don’t already, it’s time to consider getting personal. Think of the value-added benefits in your plethora of product or service offering. Then consider bundling, based on customer proclivities and tendencies, and then watch your share-of-wallet increase while ensuring she gets a lasting and enduring experience.
Cut through the clutter by developing a recurring revenue stream for your best customers and turn one-time sales events into multiple sales and offers. This is how you increase your bottom line in the long run. And yes, you too can do this in your business. It all depends on the structure of your value proposition, and the strength of your communication. Why would this work, you ask? Because (1) we’re all creatures of habit, and (2) we all seek to simplify our lives while dealing with all the tangential roles and divergent activities of modern day society. Aunt Millie at the Corner Store knows this very well and so does the Milk Man who delivers once a week. OK, used to deliver once a week, you say! Now, when he did deliver, he always knew her name, and then some.
Do you know your customer? Do you know her name? When was the last time she bought from your store or responded to your offer? Do you know why she didn’t come back? Remember the often used term, buyer’s remorse? You encourage her to come back and you mitigate her concerns with the service phone call, with the post card, with the email or with the SMS. These are all your defensive shields to ensure she doesn’t go elsewhere and offensive tools for when she comes knocking. And that’s just CRM in its basic and fundamental form.

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