Increase Customer Frequency

One of dozens of strategies listed and linked to here:
How to Make More Money from Your Business


One of the most cost-effective ways to make more money with your business is to increase customer frequency. It is as simple as this in theory: If they come twice as often you make twice as much revenue (and usually more than double the profits, since fixed costs don't rise with the additional sales). So let's look at some ways to get them coming back more often.

I'll start with a business I know--carpet cleaning. Many people wait years to have their carpets cleaned, yet if you were to ask them how often they should be cleaned, they might say once per year or even once every six months. In other words, these are properly educated customers, but they just don't get around to calling you as often as they would like. A simple solution then, is to call them and ask if they are ready for their carpets to be cleaned.

This is looked at on the page Use Your Customer List, and the idea is simple enough to implement if you have a list. Just look at it and identify those past customers who have not used your services for a long time and start calling them. In many service businesses a day spent on the phone can yield thousand of dollars in sales.

Another way to more systematically increase customer frequency is to offer a discount for it. If you have a fish-pond cleaning service, for example, you might clean and treat a small pond for $80 when you are called. But offer to do it for $65 if the customer agrees to regularly scheduled monthly cleanings. Even at the lower price you will likely make more revenue from that customer than if you wait for them to call a couple times each year.

There is a way to offer a discount and still make as much in gross profit as well--while getting that customer frequency increased. If you have a service business that covers a wide area, and you have small accounts, you often eat up much of your profit when servicing a small customer who is far from your home base. For example, if you have a furnace repair and maintenance business, a $60 furnace cleaning doesn't leave you much profit if you pay your technician $15 per hour and he has to spend an hour and two gallons of gas just to get to a customer.

The solution? Schedule for outlying areas. Call previous customers in one area and tell them that if they need a cleaning you can do it for $50 on a given day, because your crew will be in the area on that day. In the end, they save money and you make more, because you might get six jobs lined up for almost the same driving time and vehicle cost.

You can also offer coupons with short expiration dates to encourage customers to return sooner and more often. A pizzeria, for example, can send out a coupon on each bow that is good just for a month. In order not to irritate customers who miss the expiration date, make it very clear, saying something like "Our June Special!"

Look for any way to get them back through that door or on that phone more often. Increasing customer frequency can be one of the best ways to quickly make more money.

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Every Way to Make Money | Increase Customer Frequency