The Value of Investing in Repeat Customers
In this episode…
Did you know that repeat customers are the best drivers of business growth? Are you aware that positive feedback from your customers can help increase your eCommerce brand's value among your competitors?
In this episode of the Relationship Commerce Podcast, Pete Williams, the Co-founder, CEO, and eCommerce Marketing Director for Simply Headsets, joins Dean Dutro to talk about the value of investing in repeat customers. Pete explains how he ensures repeat sales for his eCommerce business, talks about the seven levers for business growth, and explains how an eCommerce brand should handle wholesale orders.
Pete Williams is the Co-founder, CEO, and eCommerce Marketing Director for Simply Headsets. He is an award-winning marketer, entrepreneur, and author from Melbourne, Australia. He is a Southern Region Finalist in the Ernst & Young Entrepreneur of the Year Program, a Small Business ICON (Best-in-Class) Recipient, and an Australian Business Award Winner for Marketing Excellence. He is also the Author of the books, Cadence: A Tale of Fast Business Growth, 10% Wins: A Roadmap for Achieving Exponential Growth in Any Business, and How to Turn Your Million-Dollar Idea into a Reality (From the Man Who Sold the MCG).
Pete's other companies include Infiniti Telecommunications, SpringCom, and Preneur Group. He is also a Professor of Practice at Deakin University, where he works with students to bridge the gap between the textbook and the boardroom.
How Do You Get Customers to Come Back For More?
To make a sale in your eCommerce business, you need to drive traffic to your website, convert leads to paying customers, and then close a sale. However, to scale the business in the long term, you need repeat customers. These are the people who keep coming back to purchase your products after the first sale.
While selling phone system solutions, the team at Simply Headsets realized that they were losing a lot of repeat customers to their subcontractors or competitors because they were outsourcing most of the phone-related services. They received a lot of traffic to their eCommerce store and got customers through the virtual door — but most of them didn’t return. So, they had to pivot by tapping into these customers to grow and scale the business.
Repeat customers are essential for your eCommerce business. If you sell them the right products, at the right time, at the right price, at the right place, and give them good customer support, these customers will rave about you. In turn, they’ll become your brand's advocates. They will help to increase your brand’s value and make your business a reputable and respectable brand to work with.
The Seven Things You Need to Do to Increase Your eCommerce Brand's Revenue and Profits
The main reason most entrepreneurs go into business is to make sales, earn profits, and grow their businesses. You have to come up with effective business management strategies to ensure that you make sales regularly. Not only that, but you also have to increase your sales volume to make more profits. However, scaling a business involves making smart decisions, and at times, the steps taken may not work as expected. If you find yourself in such a situation, you have to find out why this is happening and make changes within the business to remedy the situation.
According to Pete Williams, there are seven key things you need to address if you want to increase the revenue and overall profits for your eCommerce brand. What are they? There’s your suspect, meaning the number of people who visit your eCommerce store, your prospects, or the people likely to make a purchase from your store, and conversions, which are the people who actually make a purchase. Then, you have to consider your average item price, which is the average price of the products your customers buy, and the items per sale, or the number of products they buy at the price set. Last but not least, you need to look into how your brand encourages upsells, cross sells, and repeat sales.
When Pete evaluated his business operations, he discovered that he was doing four of the seven things needed to scale a business. At the time, they were not doing anything to encourage repeat sales and upsells — and were therefore giving away their customers to the competition. They knew that they had to make some improvements. So, they started by hiring their own technicians and focused on improving each of the seven areas, which ended up increasing their revenue and overall profits.
How to Handle Wholesale eCommerce Orders
eCommerce is one of the best ways of selling different types of products to different audiences with different preferences. eCommerce gives sellers a great opportunity to provide for customers from different locations in a very convenient way. However, it is often a common strategy among online retailers who sell a few units of products per customer.
If your eCommerce business sells both retail and wholesale, you will need to use a different selling strategy because adding 500 units to a shopping cart is not practical. In such a case, you may have to hire people to work on the offline aspect of your business, where they cater to the needs of wholesale customers. This is what Simply Headsets did to handle their big clients, although they're still predominantly a two or three items per sale kind of business.
Another way around this is to build a custom eCommerce store that allows customers to select whether they want to purchase in small quantities or in wholesale. But, your team will need to communicate with your wholesale customers before shipping and delivery to ensure that the logistics part of the sale is handled.
Resources Mentioned in this episode
- Worth eCommerce
- Simply Headsets
- Pete Williams on LinkedIn
- Pete Williams' website
- Preneur Group
- Cadence: A Tale of Fast Business Growth by Pete Williams
- 10% Wins: A Roadmap for Achieving Exponential Growth in ANY Business by Pete Williams and Dom Goucher
- How to Turn Your Million-Dollar Idea into a Reality (From the Man Who Sold the MCG) by Pete Williams
- "Leveraging the 7 Touch Points of Marketing to Grow Your Brand" with Katie McKinnon
- "The Benefits of Providing a One-Stop-Shop for Your eCommerce Customers" with Greg Hayes
- Mike Michalowicz on LinkedIn
- "Helping Entrepreneurs and Business Leaders Fix Their Business Problems" with Mike Michalowicz
- Profit First: Transform Your Business from a Cash-Eating Monster to a Money-Making Machine by Mike Michalowicz
- Fix This Next: Make the Vital Change That Will Level Up Your Business by Mike Michalowicz
- The E-Myth Revisited: Why Most Small Businesses Don't Work and What to Do About It by Michael E. Gerber
Sponsor for this episode...
This episode is sponsored by Worth eCommerce.
Worth eCommerce is a small mighty team of eCommerce email marketers who help businesses of all sizes dramatically grow revenue with lifecycle email marketing. It is made up of copywriters, designers, strategizers, and marketing extraordinaires who specialize in nurturing relationships and guiding sales through the sheer power of email.
Worth eCommerce's sole focus is creating a lasting relationship between eCommerce sellers and their customers through the most personable form of digital connection: email. Businesses that send personable, interesting, and helpful emails earn the trust and continued business from that same customer.
Worth eCommerce’s mission is to help small medium-sized ecommerce businesses generate more than a million dollars a year each in revenue using their own marketing channels.
To learn more about Worth eCommerce, visit http://worthecommerce.com/.
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