How do you clone your best sales guys? How do you drive repeat sales from your customers? A one-time sale is the first step, but driving repeat sales creates greater growth and profitability.
The secret sauce to achieving this is to use the data you already have. As we have helped our customers to use their data more effectively, we have discovered that they typically already have all the information they need to scale a single sale into many more repeat sales. Those of us who work in technology love to use words or phrases that sound impressive, complicated or mysterious, and I think Big Data has become one such phrase, but the answer is to Love Thy Big Data.
Lurking in your data is the answer key, so here are three data driven ways to drive repeat sales:
1. Study the customer data you have.
Start by looking at the basic information is in your transactional history. You will have a name, address and specific intel on what this individual wants or needs to buy. Big Data analytics is like an X-Ray machine for the transaction. It will show not just how much customers have spent, but what they spent it on, when, where, how, what they did before etc.
That knowledge will likely inform their next purchase, so if you analyse the first one you will be able to ask key questions. Was the purchase a one-off or part of a pattern? Is this a first-time purchase or is there a history you were unaware of? Did a promotion or campaign trigger the purchase?
All your customers’ interactions with your business -- whether through your website or in person, on the phone or through social media -- provide you with data to learn more about each of them. What tools are they using to learn about your business? What is an individual customer’s preference for how he or she makes a purchase: mobile device or tablet, in the store or through the website?
If you are on the fence and not sure if you Love Thy Data take a look at this Infographic published by McKinsey & Company.
A few highlights from McKinsey & Company study:
- Better marketing analytics can increase returns by 10-20%
- 72% of CEOs report that marketers are always asking for more money, but can rarely explain how much incremental business they will generate
- Big Data leaders have 6% higher profits vs. other companies
- 63% of marketers admit to not using analytics to inform their decisions
Once you know everything there is to know about your customers, you’ll better know how to engage with them.
2. Engage by observing, listening & then build loyalty:
Love Thy Big Data because it will provide you the bread crumbs to follow to know how to most effectively engage with your customer and build a relationship over time as you learn what he or she likes and dislikes.
Social media does many things, but in the context of driving repeatable sales it provides opportunities for engagement through conversations in which an unlimited number of potential and actual customers talk. It’s like being able to listen to the thoughts of your potential customers. When done well connecting with your customers via your Twitter feed or Facebook page prompts customers and potential customers to share what they are thinking. Capturing that data allows you to use that information to refine product offerings, create new products and services, or to point more resources behind your best revenue opportunities.
Each data point reveals something valuable about your customers’ purchasing habits. This is information you can use to drive repeat sales.
3. Deliver the right offer to the right person at the right time.
Here’s a big dah…customers are more likely to buy something that is targeted directly to them right before they need it.
For example, we are heading into the Christmas season, if you are a retailer let Big Data analysis tell you who sends what kinds of gifts to whom and present those individuals an incentive to buy. Your chances of success in doing this increase dramatically if during the course of the year you have found ways to engage with your clients, captured that information and learned what it is telling you.
Build a customer data model. In other words list down all the fields or types of information you would like to know about your customers, decide where the best place is to capture this information, and capture it. You might find you need to train your sales team, or customer facing teams to ask different questions to capture this information, but it will a treasure chest of insight to drive repeat sales.
Continue your research:
- Read this paper "Driving Innovation Through Analytics".
- Download "Are You Making Decisions with Only 20% of Your Data".