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Direct Sales Tip to Increase Value of Each Customer

Apr 16, 2008
Just for a moment I want you to think about all the time, energy, and money you invest into getting a new customer. As an example, think of one particular guest you met at your last home show.

In order to meet that guest, you had to first meet the hostess, and you might have even met her at a previous show. You had to ask that hostess to book a show, you had to overcome any of her objections to booking a party of her own, you had to coach her and sell her on the idea of getting other people to come. You had to pack up your car with your products. If you have a family, you might have needed to cook dinner ahead of time or hire a babysitter. Even if you did not have to cook or hire a babysitter, your spouse might have ordered dinner out (I know mine would!). Then you had to drive to a place you have never been before (your hostess' home). You had to set up your products. And then, after all that, you got to meet the guest I just told you to think of.

WOW! See what I mean about all the time, energy, and money you have to invest to meet a guest at a home show? It is hardly insignificant.

I do not say all this to DIScourage you but rather to ENcourage you to place real value on each guest, even if that guest only buys a $12.95 item. What happens to us in the direct sales business is that we know how much energy we invested into getting that hostess to book and hold a show, so we think that putting time and energy into a guest that only purchases a lousy 12 bucks is a waste of time. We figure she only purchased to fulfill an obligation to the hostess.

I am now going to share with you a little known marketing secret that will convince you to look at all your customers differently from now on. Here it is:

A two-time buyer is twice as likely to buy as a one-time buyer.

Not excited yet? That is because you do not yet understand what I just communicated. But hang on because I am going to explain.

When you are at a home show, it is only natural to think that the key is getting the guests and the hostess to buy from you. That is true. But that is where most consultants drop the ball. Once they get that first sale, they start judging whether or not a customer is "worth" a follow-up call. And this is when the gal that spent $12.95 gets crossed off the list!

AH! If you have ever done that (admit it, you have), it is because you did not yet know that a two-time buyer is twice as likely to buy as a one-time buyer. You see, when you follow-up with the gal who purchased only $12.95, there is actually a good chance she will order from you again. And here is where you cash in - if she places an order with you when you call, she will now be twice as likely to purchase from you AGAIN, compared to someone that has only purchased once (that includes a guest that purchased over $200). In other words, the real value of a customer is proved after the second sale!

That is why the real sale begins after the customer says, "Yes." Even someone that first only purchased a $12 item can become a customer that purchases from you again and again and again. It is not the first sale that matters. It is that second sale. Once a customer purchases twice from you, it is twice as likely that she will purchase with you again.

If you have had your direct sales business for awhile, you can take a moment to reflect and you will realize how true this is - think of those customers that place an order every season, or those hostesses that you count on every season to host a show. All of them have purchased more than once and now they are twice as likely to buy again.

Consider this. If you are not staying in touch with your past customers, they can still buy your product again, but from another consultant in your company. If your past customers buy for the second time, but from another consultant, they will be twice as likely to buy again, but you will not stand to benefit from that, if you fail to stay in touch with them.

Now remember how much time, energy, and money you invest into meeting a guest at a home show? The key is to keep investing in follow-up. Once you connect again with each of your customers, you will have the opportunity to work on the real sale that counts - the sale that converts a customer into a loyal customer.

Want to know the secret to not having to always work so hard? I just told you. Instead of always working to get new prospects, nurture the customers you have, and discover the amazing stream of income you can generate from customers that are twice as likely to buy from you again as those who are not!
About the Author
Tammy Stanley directs The Sales Refinery, a sales training firm that assists direct sales consultants generate more business through powerful marketing, selling, and leadership strategies. Get her FREE report, "3 Simple Secrets to Building an Empire in Direct Sales" at http://www.tammystanley.com
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