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Posts Tagged ‘Service’

What are some of the most profitable words used today?

September 6, 2010 2 comments

Do you want fries with that?

Are some of the most profitable words in history. Those six little      words are responsible for millions of dollars in revenue each year for McDonald’s.

Okay it’s not the words that are relevant to you, I think your customers maybe a little surprised if you offered fries with their purchase, or maybe not, if you’re in that industry. It’s the action, the intent, the fact that they’ve asked.

What do I mean?

It’s asking for the up sell, which leads to the increase in sales, the moving of more product and the increase in profits.

McDonalds, as with many others, have successfully mastered the art of asking for the up sell. The “super size”, the “do you want fries with that”, as I’ve said, it’s delivered them many millions in increased revenue and profits, by just asking for it.

Are you using the up sell to increase profits?

This simple but highly effective tactic can be used to increase turnover and profits dramatically in a short space of time.

It can be as simple, as I was reminded with my coffee order the other day and no it wasn’t from McDonalds, as being reminded that you have an add-on product available, in my case it was a muffin.

That simple add-on of a muffin took the sale from $3 to $7.50, over double my initial intended purchase price! But it was relevant and asked for at the right time, at point of sale.

In this case these are small numbers, but doing this consistently, without sounding like McDonalds, will lead to higher turnover and increased profits.

Don’t have fries to up sell?

This tactic to drive sales and profits isn’t just restricted to the fast food outlets or café’s. Most businesses have or could have an add-on product. Here’s a few quick examples:

  • Mortgage broker – would you like insurance with that, life or income protection? (this can be sold via an affiliate with commission paid to you for referrals).
  • Air conditioner / white goods / TV and so on purchase – would you like a maintenance plan with that?
  • For an extra $5 per month we can offer you a higher spec product / plan / service.

The list can be endless but gives you an idea. Just stop think about what you do or offer and what you can add to it that’s complimentary. Think about how you can effectively introduce it to your customer at the point of sale. But don’t make it sound like McDonalds!

Look for things that will benefit the customer, not what would just benefit you.

Thanks for reading and I hope you enjoyed this post, and I always look forward to your comments.

Thanks, Tim.

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Don’t miss your target customer……

August 31, 2010 2 comments

Don’t miss your target customer……

Who’s your customer? Do you know? Do you really know?

It’s a question that begs an answer.

It’s so easy to be in business or to start a business and be blissfully unaware who your ideal customer really is.

So how do we establish who our ideal customer really is?

Lets find out

Well firstly we need to start with ourselves and our own business. What do we have to offer? What’s our product or service? Try and understand exactly what you are really offering.

Next we want to look at groups who maybe interested in what we have to offer.

Refine

Then try and refine these groups down. Do you want all these groups as your customers?

For example. A company that produces a high quality deli counter product may have supermarkets as one of its target customers, but do they want to be involved with them? Will it lead to lower margins, longer payment terms and less control of their product?

Really spend some time in defining who your ideal customer is. The more clarity you have over this the easier it will be to market to them.

Clarity

The clarity you have about your ideal customer will allow you to build a marketing plan focused around them rather than a non targeted, scatter gun approach. This will in turn make the marketing you do more cost effective and efficient. Ultimately it will deliver to you your ideal customer making you more fulfilled in your work and more profitable.

I hope this blog gets you thinking a little. It’s never to late to redefine your ideal customer and change the way you market to them.

Thanks for your time, Tim