How Marketers Turn New Customers Into Old Customers

Of all the customer lists, the most important thing is to buy you. product Under the new customer list, let's give you an inspiration through the story of Lao Wang, a hardware store owner.

　 Potential value of new customers

In a small city, Lao Wang has run a hardware store for many years. But it never stays warm. Lao Wang is not very satisfied with this situation. One day, he met a marketing expert. The expert asked Lao Wang, you know the new customers in your shop. value Do you? Let's take out the past customer records, and we'll do a simple arithmetic problem.

After calculation, the original Customer The value was greatly ignored by Lao Wang. According to the data of past customers, every 100 new customers who come to Lao Wang store for the first time will bring twenty-five thousand yuan sales in the coming year.

According to Lao Wang's customer data, 5 people will repeat consumption if 10 people spend at his store, that is to say, 10 new customers will have 5 customers. The 5 old customers will repeat consumption l0 times in the next year, while each consumption amount is 50 yuan, which means that if a new customer becomes an old customer, it will contribute 500 yuan more to the store in one year. Developing l0 new customers will bring him 2500 yuan a year in the future. After this calculation, the value of Lao Wang's new customers far exceeded his expectations. A new customer is equivalent to about 250 yuan of sales.

After knowing the value of new customers, Lao Wang was shocked. So he continued to ask marketing experts how to get more new customers. A new customer can bring 250 yuan sales in the future, so we can get the first consumption of new customers by making less profits or even losing money in the first transaction.

According to the analysis of marketing experts, hammer is the product that almost every new customer wants to buy in Lao Wang's hardware store. He decided to take this product to promote sales and attract new customers. Under normal circumstances, the sale price of a hammer is L5 yuan, but the cost is only 5 yuan. So he sold the hammer at a super low price of 4 yuan 5 cents, and stressed that the normal price is 15 yuan, but the price discount of 4.5 yuan is only effective for new customers. Many people in small cities know that they can buy super low priced hammers in Lao Wang's shop, and a large number of new customers come to buy his hammer. The end of this story may be thought that Lao Wang's hardware business has been booming since then.

Although he loses 5 cents every time he sells a hammer, compared to his future earnings, he only gets 5 dollars for a new customer, which is very cost-effective. After such a promotion, if there are 15 new customers buying hammers on average every week, a year later, Lao Wang's sales will increase by 15 x 52 x 250=195000 yuan, and in fact, Lao Wang's investment for every new customer is very small.

Promoting sales with price sensitive products

For most buyers, price is the most effective attractiveness tool, which sets the price of sensitive products lower, and guides consumers to impulse buying, thus constantly repeating consumption.

Lao Wang's hardware store not only sells hammer, he still has many products, but many clients need such hardware tools as hammers. Therefore, hammers are very common, and there are sensitive products everywhere. When the price of the hammer is noticed everywhere, and Lao Wang makes such a big profit on the price of the hammer, it will give consumers a strong impact. He will think that the products of Lao Wang's shop are cheap and fine. Therefore, this hammer is a sensitive product of Lao Wang to open consumer impulse.

You can often see in the supermarket, many times, they will play a promotional brand there, usually rice, clothing and other products. Why do they often make huge profits in such products? Because these products are more needed products in daily life, which are more expensive and more priced. When the price changes of these products are relatively large, they will have a strong desire to buy customers. So such goods are sensitive commodities. Other supermarkets, such as watches and clocks, furniture, and so on, will sell other products. These products are not easy to be sensitive to consumers. They will not notice that even if prices are reduced, no concept can be measured, so that the income of sensitive products can be compensated by the income of non sensitive products.

Lao Wang is the first to attract new customers by hammers. Then, when customers buy hammer, there may be more desire to buy, so they will buy products such as nails, sockets, faucets, electric lights and so on. After repeated consumption, Lao Wang will gain more profits in the subsequent sales process. So the hammer becomes a sensitive product to open customer's desire to buy. The real profits come from upgrading consumption, which is the secret of Lao Wang's success. It is the real power of this method to get more revenue from subsequent sales.