How to make use of sales longevity strategies
People often try to avoid building a flow of revenue from their customer base. Too many people are promoting get rich quickly concepts that eventually turn out to be a costly experience. If you understand how to apply sales longevity strategies in your business, you can massively increase the return of investment from your marketing and sales efforts.
Don’t miss this Fasttrack episode: Increase Sales in the niche by using ecommerce as a source of revenue based on principles of longevity. You will get new insights by listening to the growth zone show.
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Transcript of this episode on sales longevity strategies
[00:00:00] So in this fast track edition we are going to look at how to increase sales in the niche by using e-commerce as a source of revenue based on the principles of longevity.
[00:00:15] So what does that actually mean when we’ve put it into a practitioner’s point of view? So, it’s about getting things done, but in a long-term perspective. We want to increase or build a long-term customer relationship. We want the customer lifetime value to really massively increase. Just an example. Let’s say you usually have customers buying products from you for maybe a thousand dollars.
What is possible in your business?
[00:00:52] If you actually are able to increase it to maybe double or let’s say 60,000 in a certain period, even if it’s over 10, 20 years, it does matter. But if you are able actually to get them to buy again, that’s the best thing that you can get. How do you do that in E-commerce?
[00:01:17] So we want to have the principles of longevity, which means actually we have to provide not only great service, we need product quality, product usability & upgradeability. This means, as an example, some let’s say you are selling cars and maybe I buy a cabrio at the beginning.
[00:01:47] Then eventually maybe I have a family and I say, “well, I can get the pram and the back of the car”. It’s okay for my golf bag. A family with maybe two kids, usually needs a van or an SUV or any kind of larger car.
How can i upsell a client using sales longevity strategies?
[00:02:10] So I must be able to change my leasing, let’s say I leased the first car. I want to change it into a bigger company car. And I must be able by contract to actually move out of the one vehicle contract agreement into the other one. For us as seller, especially if you’re maybe selling cars or something or you are in the leasing business or any kind of areas, you are actually able to get your customer to shift onto a larger deal.
[00:02:46] You will benefit even if it’s something totally different, whether it’s a training agreement or coinciding package or anything. If you are able to move them up the ladder and doesn’t matter whether they’ve been doing business for you on the old terms for a month, a year, in 10 years, you can still upgrade them. You have to show them as well that real value, why to upgrade.
Do the sales longevity strategies also work for ecommrce businesses?
[00:03:11] When you take that into perspective, into e-commerce, things apply in the same way.
[00:03:18] So we have to have really a massive competitive advantage in relationship to the value that we provide with our products and services, with our customer service, with our innovation, because eventually, one day the customer may want to buy a new product to replace old product because it’s maybe worn off or maybe his needs have changed or Technology has evolved. If we keep innovating, we’re able to sell them a new product, the next version 2.0 or whatever it may be.
[00:03:51] And that’s really a way that we can massively increase.
Your increase revenue also reduces your operational costs
[00:03:56] Let’s be realistic, even in logistics for e-commerce, the more you’re selling, the more you’re shipping, the more well your shipping costs eventually will drop because you’re able to negotiate better deals, better prices per item or weight. You can do that. Of course, the different kinds of services where you can just go piggyback and then use the special prices and the contingency of others. Now, these companies where you can go and ship everything through them and they just find the cheapest deal that’s possible in some countries. Not everywhere.
[00:04:38] On the other hand, if you’ve got your own direct deals, you have a long-term ability to actually put greater pressure on your logistics, businesses and logistic partners. Actually, by providing them as well with greater value because you’re doing more business with them and they are more motivated to give you a better deal. Both sides still make good money. It’s not like somebody is bleeding out, because you shouldn’t do your business on terms where you actually trying to destroy the other partner who’s actually supplying you. If his infrastructure falls apart, your logistics falls apart, too. So that’s another thing that you do not want.
How to avoid hurting your partners with sales longevity strategies
[00:05:24] Therefore, you have to have as well this longevity idea not only towards the customer, but as work towards your suppliers. How can I improve as well the quality of my suppliers? How can improve as well the reliability of my existing suppliers. And it doesn’t mean whether it’s just somebody who is producing a product. Logistics, applications, even the kind of platforms that I am using to just run my business. That’s something that I can improve.
[00:05:57] And when you put everything into a basket, eventually it’s the basket that the customer is buying because he notices everything is running so smoothly. Customer service is awesome. The product is supplied in time. The product is qualitative. If it arrives perfectly, it is easy to implement or to start using it. It is reliable. And if something happens, I get help. And that really makes a massive positive impact. So, you then eventually get something that’s called the net customer performance and the customer satisfaction value.
[00:06:44] And these things I’ll be talking them on later time, but more in detail because I don’t like these abbreviations here actually to explain what it really means and how can really apply to my business, because I’ve been using it and it just massively changed my approach in the last few years. This model I’ve been using as well for over seven years now.
Improvements lead to more sales opportunities
[00:07:09] And as you gradually improve it and adapt it, of course you open your eyes and notice that there are things you can really change. It takes some time until you’ve got the right structure and the right surface.
[00:07:26] That’s concluding this for this Fastrack. In the next episode, we will be looking at where can you become better as a creative person or engineer? That’s important for a business like us as well where we have consulting and e-commerce. We have other kinds of product development and solutions and services that we provide. We are hiring creative people. We’re getting engineers, programmers and all sorts of people from different kinds of places of the world for our different locations.
[00:08:06] That’s when you notice as well who you want to have in your e-commerce business. Because Just writing stuff in to some kind of S.O.P standard operations manual and other kind of things, is not going to get you anywhere. You have to have the right people who are actually going to follow up on that. They have to know how to implement this stuff. So that’s something special we’re going to talk in the next episode. Have a great day.