3 Strategies That Can Increase The Profit Margin Of Small Businesses!

Most businesses are struggling to survive. Others are just trying and working hard to acquire and retain customers. If you are able to get customers who buy from you and you are not keeping records and following up on them so you can make more sales from that same customer, you are leaving a lot of money on the table.

Give every customer who uses your services or products opportunity to get related products and hence buy from you again and again. The easiest way I know many businesses in this computer age have seriously increased their revenue is via record keeping and automation of marketing via a system designed to pre-sell and convert
a customer to be a repeat buyer.

So instead of selling one item to a customer, you can sell as many as 3 or more items to that same customer. Ofcourse every entreprenueur knows that it is easy to sell to a satisfied customer than an interested person.

Here are the 3 special strategies to use to get a return customer and at the same time get tons of referrals from every customer who purchase from you.

1. Use of Special Offers.

A special offer as the name sound increases the perceived value of your products and services and at the same time makes the customer happy dealing with you. A special offer is usually reserved exclusively for customers to drive more sales home and at the same time make your customer feel “special” and privileged to do business with you.

That perception alone, helps you as a small business person to sell more of your products via discounts. For instance, if you sell a product for N7,500, a small discount of 20% can help you to make more sale simply because that offer is a special offer.

2. Create And Maintain A Customer List For Each Product Sold.

Many businesses have several varied products, for every product sold, try to maintain a customer list for that particular product. You do this by storing or recording the contact details of those who purchased that product under a heading. For instance, someone who sells mattresses, may have mattresses for babies and adults, the list of names for those who purchase babies mattress should be separate from those who purchase Adult mattress.

The reason you maintain a separate list for each product bought is to be able to recommend targeted but similar products to that very category of people whenever your company have a new product targeted to either the babies or adults group.

When properly done, you will be able to set up an advertising and marketing campaign that is highly targeted, and will also elicit more response due to the fact you understand your market. Your customers on the other hand will see you as a caring provider since you feel and understand them better than your competition.

3. Create A Powerful Referral System

Most times, satisfied customers out of satisfaction for good services recommends products they have used to their friends and colleagues. In fact marketing studies shows that a satisfied customer can refer an average of 3 people to your business.

If you want to take it to the next level, you can increase, double, or even triple that average by setting up a reward system in place to make referral exciting and profitable. Usually most highly successful businesses I know of usually give incentives or monetary rewards in form of commissions for each product sold.

When you have a good product, excellent customer care, and a powerful reward system in place, your profit margin will shoot through the roof and you will generate more businesses, patronage and a whole lot of word of mouth advertising that will increase and build your businesses to the next level.
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Joe Okoro is a successful information publisher and e-mail marketing consultant with over
500 published articles online.