410.235.7070 Join Our E-Letter
businessGPS Taking You From Where You Are to Where You Want to Go.

The ONE Word That Brought in $2.5 BILLION

The ONE Word That Brought in $2.5 BILLION

October 22, 2009

There really is ONE word that is credited with bringing in $2.5 BILLION in sales. It's not 'sale,' 'discount,' 'save' or even 'free,' although they would all be good guesses.

In fact, it's a word we should all try to use in our business and make it even part of a much larger strategy to increase sales.

Still can't guess what it is?

Here it is: REPEAT!

Simply by adding that one word to its products, Proctor & Gamble is reported to have brought in more than $2.5 BILLION in additional sales! Now that’s a lot of money, but keep in mind that P&G sells more than $50 billion a year in consumer goods.

On their products, such as Head & Shoulders, Herbal Essence, Pantene, Olay and Noxzema, they simply use the words, “lather, rinse and repeat.” With those simple instructions, they were able to increase the amount of times people use their product and they automatically increased repeat sales.

People use their products twice as fast and therefore purchase twice as much.

How brilliant is that?

I’ve found it costs 10 times more to try to sell to a new customer than it is to sell to a current customer. The key is to find those things that will help you increase sales among your current customers. There are two ways to do that:

1. Increase the frequency of the sale.

We just saw how P&G did it by adding the word repeat. Here are questions to consider to help you come up with ways to increase the sales frequency:

  • What products or services are your customers likely to purchase a second, third or fourth time? 
  • What is currently relevant right now that you can offer your customers?

2. Increase the size of the sale.

  • What other products or services can you add to the sale to create a package offer? (Example: get 2 towels and a bottle of soap for only 99 cents more.)
 

Amazon.com does a terrific job of recommending other books in an effort to increase the size of the sale among its customers.

  • What complimentary products can you combine with your products? 
  • What can you offer as a “loss leader” to get people in the door? (Example: Jiffy Lube is famous for offering $19.95 oil changes, but the average customer spends more than $60 once they’re there. Be sure to have a good up-sell system in place!) 
  • What impulse purchases can you add? (Example: Grocers offer highly profitable “eye candy” such as chocolates, candies, magazines and batteries at the checkout counter.) 
  • What links can you add to your website at checkout? (Example: Amazon.com and 1800Flowers.com both do a terrific job of offering additional products such as “frequently bought together” or suggesting balloons to go with your flowers before you finally check out.)

    The idea is to increase the amount of sales you can get from your customers. Don’t just settle for ONE purchase! Your customers already like what you have to offer and trust you. Too many times, I see business owners ignoring their own customer base and constantly trying to acquire new prospects.

    Your best customers already walked through the door. So how can you increase the size of the sale once they’re there or increase the frequency of the sale so they come back again and again?

    Always taking you from where you are to where you want to go,

    Jon

    Jon Goldman, CEO 

 

Simply by adding the word "REPEAT" to its instructions, Proctor