5.15.80: DISCIPLINE #6 AGGRESSIVE MARKETING & SALES - William Eastman

INTRODUCTION
Today we start Discipline #6 - Aggressive Marketing & Sales. This the last step in the process of moving from a good business to a leader, a market dominator. Up to now you have revisited and improved both your market coverage and share of business. Then you sliced the market and your offer into smaller pieces. Now you are ready to get aggressive.

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We will cover Discipline 6 in the 3 parts: Frequency of Purchases, Size of Purchases, and Margin of Purchases. 

Today's Show:  Frequency of Purchases

OBJECTIVES
We will share the statistics of how critical increasing the frequency of purchases is to revenue and profitability. Then we cover techniques you can use that make the numbers come alive. Your role is to determine which methods fit your current customer base.

Owner/Executive Perspective

1. What is the impact on revenue and profitability for increasing frequency of purchases?
2. What are my options and when should I use what?

What You Need to Know

• The Average Company
  • 92% of revenue from 1 time sale, 8% from return sales
  • 8% return sales = 41% of new revenue
  • Repeat sales = 3 to 7 X increase in revenue
• The Math
  • Repeat Purchase Rate = # of customers who bought over X time / # total customers who bought over the same period
  • Purchase Frequency = # of orders placed over X time / # of unique customers over the same period
• The What
  • Special Offer for Repeat Purchases
  • Prepurchase of Exclusive Items
  • Pyramid or Ladder
  • Loyalty Programs
  • Upsell During the Sale
  • Reorder Reminders

What You Need to Do​

1. Data Collection
   1. Buying Persona
   2. History of Purchases (FRM)
2. Personalized Consistent Contacts
   1. Narrowcast the Offer
   2. Narrowcast the Communications
3. Add Value with Every Touch
   1. Narrowcast the Communications
4. Incentivize Consistent Purchases
5. Focus on User Friendly Operations

​Next Week - Discipline #6 - Part 2: Increase the Size of Purchases.. If we are going to achieve market it is going to make more revenue and better margins. You have to finance the improvement  and aggressive marketing & sales is your best option. 

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