What if you could get your first time customers to become repeat customers that come back and buy your product or services over and over? Would that increase your overall profit?
What I'm talking about works really well for most types of local businesses. But this works especially well if you're selling a product or service that people can use more than once a month. And most of the businesses we work with didn't even realize they were sitting on this extra money until we showed them.
And I bet you don’t either, in many cases it's totally transformed their bottom line and in a couple of cases it even saved a few businesses from closing their doors, okay.
So, let's get straight into it, so here's exactly how this works. Here’s what happens right now in your business, okay. Step number one, a customer walks into your business and they make a purchase, and that's great, right. That's awesome, you make some money.
The second step though is that the customer walks out, and as you know only a small percentage of those customers ever come back to make a second purchase from you. So you spend all that time and money getting them into your business and most of them walk straight out the door and never come back. Which is pretty crazy, right, when you think about it. Statistics show that less than a third of your customers are going to come back, so you've got a 20 to 30% chance of getting those customers back.
So what if instead, you got twice as many or three times as many of those customers who made a purchase from you to come back and make a second purchase? Do you think that would totally transform your business and your bottom line? Yes, of course, it would, right.
Studies show that a customer becomes more likely to purchase from you again as their number of purchases increases. So, what this means, is the more times you get a customer to come back to your business. The greater their potential lifetime value is, and that's why getting this second purchase is so important.
They come back for a second purchase. They're more likely to buy a third, a fourth and a fifth time. But that's not where the fun ends, what's even cooler is that studies show that not only do these costumers who come back, buy more often, they also spend more as well. Some studies actually show that repeat customers spend up to 33% more than first-time customers.
Would your business change if you could increase your profits by 25% or more this month? I'm sure it would, right. The customer comes in and they make a purchase but here's where everything changes.
Instead of just letting that customer walk out, and in most cases never return. You're going to give that customer a reason to return to your business. And the way you're going to do this is very simple. When they pay you simply ask them if it's their first time at your business, if they say yes, you present them with this glass jar. In the glass jar are coupons.
But here’s the really important part. We don't just give them a coupon code and send them on their merry way because that doesn't work very well. So, what we do is we get them to send a text message to a number to claim that coupon. And when they send that text message, they are added to your SMS list and they then immediately send a text message back with a coupon code. So, very simple they send a text message, they get one back. Now the great thing here is that they can't lose their coupon now.
They have it in their phone, and because you now have their phone number we can send them out a reminder SMS a week before the coupon expires and a day before the coupon expires. And that's really important; these reminders are what get people back. This drastically increases the way people are using the coupon and it dramatically increases the number of first-time customers who come back to make that second purchase. This step is really important because SMS text messaging has 100% open rate.
In fact, 90% of all text messages they say are read within three minutes of sending them. Which is pretty cool, think about how many times you've received a text message and you haven't opened it. Probably never, right.
So text messaging is definitely the key here, and it's that simple. That's how you increase your profits by 25% or more this month pretty cool, right. But here's where this actually gets even better. And where you make even more money, you are now also building a list of your customer's phone numbers who have bought from you.
And you can contact these people at the drop of a hat, now we recommend to our client sending only one or two texts a month. Promoting a special event or a special offer, the key here is that it should be something newsworthy. Not just bombarding promotional stuff all the time, so make them feel special. Maybe you are having a slow week, so offer them a special offer to get people into your business. Maybe you have an important event coming up, send them a text message about that, maybe you have a new product or a new offering starting.
Send them a text message about that. Whatever it is, you now have the ability to drive past customers back into your business at key times. And remember that those SMS messages get opened way more, so I'm sure you can see why this really is hidden money that you're literally sitting on right now. And the great news is that we're going to set this exact system up for you today, free of charge, okay.