The final strategy to grow your business is frequency of purchase. Frequency of purchase is the number of times a customer has bought your service or product. How do you increase the number of times that your customers buy from you?
Simple, the answer is by creating a relationship with your customers.
Building a relationship with your customers doesn’t have to be awkward. Giving personal gifts and regular information about your company are great ways to build rapport.
From this, your customers will know that you appreciate them.
Next is by following the recurring revenue model. The recurring revenue model is a business model where you get your customers buying repeatedly from you.
You can charge a monthly or annual fee instead of selling a product for a one-time fee.
Another helpful way is by info product up-selling.
When your customer buys a product, you can upsell a related info product that is billed on a monthly basis. For example, if they bought a protein powder, you could upsell a monthly info product on building muscles.
You can also set up an auto-reorder system by auto-billing your customer for their future purchases.
This will save them the time and trouble of coming down to your company.
Final Tips! Make sure to follow these two tips:
- Test one thing at a time
- Measure your outcomes all the time
Video Transcript
The frequency of purchase. So this is one of the five key cornerstones to scientifically growing your business which is to increase the frequency of your purchase.
And the first one is to build relationships, okay? Don’t just get customers but build relationships.
So, yeah, one example. Anyone here heard of Joe Girard before? Can you type in yes in the chat box. If you heard of Joe Girard, he’s like in the Guinness Book of World Records for the most amount of sales or something like that.
So one of the key things that he did was that he didn’t just get customers. He actually built relationships with his customers.
So every time the son had a birthday, they would send a card. Every Christmas, he would send a card. Every festive season, he would send a card. He would send birthday gifts.
Whatever, right? So, it became like a relationship. Not just a what do you call that, a transactional thing, okay? It became a real relationship between him and the customers.
And, in my space, I’m the same, right? The key is about building relationships. So, like, for example, you guys know I work with Vince Tan. I market a lot of his events. And the thing is, he also refers a whole ton of clients to me, right? More than I can ever handle, right? So that’s why I’m not really actively searching for more business because he gives me so many clients that I can’t even handle all of them.
Right? So one or two key relationships can absolutely transform your business. Okay. So anyway, we’ll talk about this a little bit more. Okay. So we talked about that, okay.
And this is what I’m doing too. Why I’m doing this information webinars and I’m not selling anything is also because I’m building relationships as well, right?
And I know some of you who got in last year and you actually paid, right? So, you know, we kind of like making that available to everyone now, so I hope you guys don’t mind.
But, you know, I’ll continue to give you really good content, right? Paul, Juliana, Rona. So, you guys don’t need to renew your membership. So, there’s nothing to renew. So, basically, I’m just gonna give this out for free because what I’m doing here is I’m cultivating relationships as well.
Okay, so yeah, that’s one thing to do and also just about doing newsletters as well, right? That’s another thing you can do.
So, let me give you an example for this guy. Ben Settle All right. As you can see, it’s all marketing people that I subscribe to. So, Ben Settle is one of the top copywriters in the world and get this right. His whole business is based on email marketing.
Okay, so what he does is he doesn’t actually even advertise anywhere. So He’s been building his list of followers that are interested in marketing and copywriting and he’s sending them emails every single day. I get emails every freaking day from this guy, right? But they’re all value emails, right? I learn something from his emails so that’s why I keep subscribing to it, right?
But his whole business and it’s like multimillion-dollar business is built on his email marketing. So every day he sends out stuff and then once every month or twice every month, he will send out an offer, okay?
So it could be to purchase one of these books which is very expensive, like $400, or it could be to subscribe to his newsletter, which is a paid newsletter, which he sends out every month and that’s $100 every month. And that’s this whole business model. He might take up one or two projects now and then which would pay maybe 40, 50 thousand dollars per project, right? And that’s all he does. Okay, so his whole thing here is based on building relationships and building trust with the customers, right?
All right, so the other thing that you can do to increase your frequency of purchase, apart from relationships, is to create a recurring revenue model. Okay, so a monthly or annual fee, okay? So that’s something to consider in your business as well. So instead of selling once off why not sell them on a monthly basis, right? So every month, for example, you could get x amount of dollars coming in from this monthly recurring revenue, okay?
Info product upsell, okay? So what it is, is if you’re selling a physical product or any service right now, think about what is it that your customer really wants that you can bundle in a info product that has this recurring element to it.
So say, for example, someone’s interested in health and building muscles, right? So they bought into your program of like getting six packs in 60 days program, right? And, yeah or they bought this supplement from you, let me give you a better example. They bought this protein powder from you, okay? So what it is, is they’re looking for muscles, right? So why couldn’t you sell them an info product that is like you know where they get coached by someone to build muscle every single month, right?
And you know that has this recurring income. I mean, you don’t have to create it yourself. You could find someone that is already a coach in the space and say, “Hey, what if I refer customers to you? And we split the revenue 50/50?” right? So that’s one way to actually, you know, quite easily get that recurring revenue. Okay.
Auto reorder every month. Okay, so like, for example, some supplements that I take right now, they basically said, “Hey, why not instead of you coming back and ordering every month”, right? Which I do anyway, “Why not we put you on an auto reorder thing? So every month, we will just bill your credit card and send out this supplements every single month, okay? And you get a 10% discount if you go on this program and you can cancel at any time”.
So for me, that kind of like saves me, the hassle of going in every month and ordering my supplements every single time. And then I get also a 10% discount. So it’s kind of a win-win for everyone. All right?
So yeah, have a think about these ideas whether that can apply to your business as well. Because, you know, a recurring revenue model is really, really good because then every month you have stabilized cash flow like for me every month, I know I will get x amount of dollars, right?
Whereas previously in my book publishing business, it was less certain like some months we could go six figures and some months we could do like mid five figures. So it was really fluctuating all over the place, right? Because we didn’t have a recurring revenue model and every time we have to go out and look for new clients whereas with now my model it’s like every month I’m going to get at least this much because we got a profit share arrangement I might get this much right so it’s quite stable, relatively stable based on historical data, okay?
Right. Okay, so this is just one example where you can, Digital Marketer, where you can try them for 14 days, then afterwards, they keep billing you, every single month, right? Okay.
So remember, right, I just want you to want to reiterate this, is that, you know, the five things that to grow your business, right? Which is the leads, sorry, the traffic, the leads, the conversions, the average dollar sale and the repeat purchase right?
Each one of these areas if you can increase it by 30%, just a 30% increase which you guys can easily do from what I’ve shown you, over the last two sessions, you can increase your business 2.7 times. And if you increase each of these areas, as I said by 50%, which is also not that hard you can increase your business by 7.5 times, okay, so that is the power of compounding.
Once you understand this five elements to grow your business, predictably, it’s not that hard to grow your business, okay?
Right? So some final tips here for you guys is that first of all, make sure you test, test, and test okay? So we’re talking about different offers, higher value offers.
We’re talking about recurring stuff.
We’re talking about, you know, sales scripts and all that kind of stuff.
We’re talking about traffic.
So all this stuff you make sure you test different approaches and see where you get the best bang for your dollar and make sure to test, you know, all five areas, right? Right. Not just one.
And measure, measure, measure because that’s the only way you can improve, okay? Lot of people say, okay let’s try this new headline or this new copy and they never measure properly and so they’re not sure what’s actually giving them the increase which is obviously not very cool.
And I think it’s best to test one thing at a time in each area.
So, you know, if you’re testing the traffic sources, for example, Google versus Facebook or different ad on Facebook just testone thing, right, at a time.
If you’re trying to increase your average dollar sale, with a new product bundle, just test one product bundle at a time, okay?
