Customers in a lot of ways, are like cattle. They really like to take the path of least resistance. They don’t want any hassles, or to be bothered with jumping over hurdles, they just want to do their business in the easiest way possible.
That’s one of the reasons why mortgage refinancing has never been what it should be. It doesn’t take a rocket scientist to figure out that a one or 2% difference on a mortgage can equal thousands of dollars in savings, or additional payments. Most of us who been through the process of refinancing or obtaining a mortgage can recall how much fun it is to complete the stacks and stacks of papers required. I haven’t even started to like about the reams of paper I will need to provide copies of and I’m already tired!
If your business that wants to increase your revenue, please read on. If increased revenue isn’t what you’re all about that’s okay, you’ll be going out of business soon anyway.
If you make it easy for your customers to do business with you, they will do more business with just you. What’s more, if you take a look at the behaviors of your most profitable customers and figure out what drives them to do that business with you. By taking a little time and analyzing your best customers, you should be able to put together a plan to move others in the same direction
Now some businesses penalize those customers who aren’t as profitable as they would like them to be. Banks come to mind. Instead of saying, “We want to help you save more money.” They generally take the tactic of if you don’t have $X in your account, were going to charge the hell out of you. My favorite story along these lines is one Wells Fargo Bank created their ATM only account. The bank was growing, and frankly the cost of utilizing a live teller was going through the roof. Some brilliant person came up with the idea that if you force customers to the ATM it would reduce lines in the branches. It did reduce lines in the branches. Average teller wait times went from four minutes to less than one. However, nobody anticipated the side effect of the sales decline when people aren’t coming into your business to buy things.
On the opposite side of that experience is Starbucks. What is there in game? They want you to buy more coffee, water, snacks, bananas, beer and wine, coffee makers and K cups. Again you’ve got an issue with line wait. However, by leveraging their mobile app to facilitate the ordering process, they’ve hit the mother load. You order via the app, show up at the store, walk through all the great merchandising, and find your way to your drink. It’s ready to go just for you. The only major flaw I found in their plan was that it did not recognize the amount of money you were spending. So for instance, if I buy one water, I would get the same credit as someone who bought 10 lattes. As of this writing, Starbucks has revamped their rewards program to recognize those who spend more. After all, isn’t this what it’s all about?
Something to think about. How do you motivate your customers to do what you want them to do. As a manager, you lead employees, so how are you leading your customers?