How to Get Undying Loyalty and More Profit From customers with a Little Known Used Technique
In this economic climate businesses should be earnestly seeking ways not only to make more profit but also to keep customers longer. One way some businesses do this is by investing in research and development specifically to develop new products to sell.
Although I haven’t had it before I would enjoy it if I heard: “Would you like to look at our extended benefits package… it only takes a minute to explain and it gives you three additional gift packages at more than a 76% discount which is not available to standard customers on this particular product”?
Now this is what dreams are made of and this is what creates excitement in customers not resentment. It creates anticipation for what they are about to see and hear. It catches the unexpected off guard and customers become more susceptible and see it as owning additional protection, not buying another product sale.
This makes a customer more secure and safe in that they have made the right decision and they now have an additional degree of security if anything goes wrong with what they have just bought. This is what will increase sales over and above what you are making now. Look for where this isn’t available in your industry and be the first to make a big deal out of it to gain a marketing advantage.
Let me give you a real live example: Its non existent for companies to unconditionally replace your mobile phone [cell phone] if it breaks down outside of their skimpy 14 day guarantee. What if you could have an extended guarantee over and above the manufactures guarantee that would replace your phone or cover the expenses of repair for up to 2 years [limited to the contracted time]?
Extended warranties are subtle forms of insurance policies that guarantee a product or service’s performance, especially after an initial period of time. The best part is its pure profit for the astute business owner.
Using mobile phones for a case study I did the figures for a worst case profit scenario and came up with some very interesting stats. Say out of every 100 phones sold it is worth $240,000 to your business [LVC is worth $2,400x100 including billing contract time of 2 years]. Say a person replaces a damaged phone once every 3 years [could have had more than one phone]. With a new offer like the extended benefits package let’s say that figure increases to 2%.
That equals two repairs and one guarantee replacement. The replacement maybe $2000 [1% =1phone] plus repairs cost to you $2000 you have an exposure of $4,000 that’s 2% total. Do your own figures… but you could offer this service and still make a killing with cash flow and generous profit.
TIP: If you think about it your cost is nil not 2% because you pay for it out of the additional profit you didn’t have before.
Additional sales would come from the additional warrantee sales that will evidentially be made with your new exclusive offer. **In other words pay for it out of the sales you never would have received if you didn’t have your expanded benefits package. This is the secret!
A guarantee promises benefits, warranties promise the enjoyment of those benefits. The extended warranty [your new warranty] promises your customer the enjoyment will continue or is optimized. Your warranty doesn’t have to be any of the reasons I have mentioned it may be a future upgrades, additional benefits, membership programs and points clubs.
Or repeat purchase incentives, service packages or specialized, personalized technical support, time-limited licenses, installation help, additional education or tips on how to maximize the enjoyment of your purchase or related and unrelated services for the operator a business in its own right and so on..
TIP: A perfect form of warranty is to on-grade a package to a larger one at a wholesale rate.
More about the author Dan Cavalli and his teachings go to
www.the-richest-man-in-babylon.com
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