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HOW TO INCREASE SALES Without using discounts and promotions

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Are you looking for a simple and effective way to generate sales and increase customer loyalty in your restaurant, bar or café, all without having to resort to outrageous discounts or giveaways?

Then stay tuned because in this video I am going to show you how to do it.

If you own, run, manage or just work in the hospitality industry, then you know how hard it can be to increase sales, after all, you have lots of competition, more demanding customers, and every day of the week someone is offering outrageous promotions to try and steal your customers away.

Well, I am here to tell you, that if you focus your energy on increasing sales and building customer loyalty by offering freebies, discounts and giveaways, then you are setting yourself up for a fail.

The reality is apart from increase your prices there are only 3 main ways that you can increase revenue in your business

  1. You can get your existing customers to buy more of the same products, now this is relatively easy because your customers already know what you do and they are already buying these items from you.
  2. The second way to increase revenue is to upsell and cross-sell to your current customers, this requires your team to know what your customer wants and to then suggest additional items they may like.
  3. The 3rd way to increase revenue is to attract new customers to come and buy from you.

 And so this leads us to the big question.  

Where do you need to focus your energy and time? 

And the answer is to get mote customers right, after all your current customers are already buying from you so you.   Now, this seems does logical because more customers mean more money in the till.  Right!

Yes, this is true, but there is a catch, research has shown that it can cost as much as 5 – 10 times more money to attract a new customer then it does to sell to and keep your current customers.

These costs include everything from

  • advertising,
  • storage of additional menu items,
  • additional staffing costs,
  • and the lost revenue caused by those discounts, sales and promotions.

And even after spending all this money to get the new customers through the door, if you are unable to provide them with a great experience, then there is no guarantee they will want to return.

Plus your competition will be doing the same types of promotions, as they try to hunting for these same new customers as well.

And so, here is the irony.  Your current customers are your business's most valuable asset, and this is because they already know what you do and they already want to buy from you.

And if you consistently provide great service and great products, your current customers will want to  return,  and they will promote your business to their friends and colleagues to come as well.

Which means more sales.

But like all good things, building customer loyalty takes time and effort, it is not just about providing a great product at a great price, it is also about the service you provide

Your team need to build a relationship with each customer by getting to know them by name, remembering their order and creating a personalised experience every time they visit.

And once your customers love what you do, then why not ask them to review your business on  their social media communities like Facebook, open table or google.

These online reviews are powerful, because they encourage new customers to visit and buy, but best of all they are completely free. 

One word of warning through. Just make sure that as each new customer comes through those doors, that you treat them as if they are already a loyal customer, because when you make them feel special then you encourage them to want to return?

And maybe they might want to leave a great review online to.

What are your thoughts, do you agree or perhaps you have other some other tips to help increase sales?

If so then leave some feedback in the comments section below. 

Why satisfied customers are affecting your business

Satisfaction does not create customer loyalty

Over the last decade there has been a massive push from businesses to deliver and measure on customer satisfaction.  

Today business use a wide range of tools from of GAP scores, Mystery shopper experiences, and on-line communities like Trip Advisor, GOOGLE and Open Table etc..

Typically, customer satisfaction is a measure of how your product or service meets a customer’s expectations

The customer loyalty myth

Customer satisfaction does not create customer loyalty.

Why?   you might be asking yourself. 

Surely if a customer is satisfied with their experience they’ll be happy and more willing to return right.   Well not really - a customer can walk away from your business satisfied with the service, the meal or the drinks but this is not enough to make them into a raving fan. 

Today’s customers have more choice and options than ever before, so building loyalty is harder than ever.

If we use a typical customer satisfaction rating scale and ask customer to rate their experience from 1 (very dissatisfied) to 5 (very satisfied).  Logic would suggest that the higher their level of satisfaction, the higher their level of loyalty to a brand would be. 

But this is not the case. 

The customer loyalty reality

Customer loyalty is both an attitude and behaviour of a customer to favour, visit or buy from one brand over another. Each customer’s loyalty towards a brand will be influenced by how they value the product or services.

However, the reality is that the way a customer value’s your products and services is not as simple as you might expect. Studies in the late 90’s by the three Harvard professors (JL Heskett, The Service Profit Chain; The Free Press; New York 1997) identified that customers can be slotted into 3 different zones.

  • How Rating 1 – 3.5 - The “Defectors” are those customers who are “extremely dissatisfied” to “slightly dissatisfied” with the service of the company.  These customers will not only leave, but they are also most likely going to tell their friends, colleagues and post reviews on the internet
  • Rating 3.5 – 4.5 - The “Indifferent” customers are generally happy with the service but will they come back? Maybe. They are happy but not loyal. 
  • Rating 4.5 – 5 - The “Loyal” customers are truly satisfied with the company or the service offered resulting in true loyalty to the company. They will continually return, bring their friends and buy off you.

In a world of high competition, and even higher customer expectations there is now an even greater need to deliver your products and services to exceed the customers’ expectations and deliver great value. 

If you looked at your current customer service scores which zone are most of your customers?  

Do you have any questions or comments?  Leave them in the comment section below. 

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