Increase Frequency of Purchase
A Computer Store has a client named Tom. Tom bought a computer system that included a desktop computer; Microsoft Office (which includes
word processing, spreadsheet, database and presentation software) business plan software; and an all in one fax-printer-scanner-copier. This
tells us he probably has a small business or a home business (of course this would be a great question to ask him for their files).
What do they do with this information to increase frequency of purchase?
1. They can notify Tom of new software upgrades. This triggers an event he may have been totally unaware of. By doing so he purchases the
needed upgrade much sooner then if he waited to learn about it and decided to take action (perhaps when he was in a competitor’s store)
2. They can introduce Tom to related products (cross sell) or better versions (up-sell). After all, if Tom uses Microsoft Office for word
processing, financial spreadsheets, and presentations, he may need Microsoft Publisher to jazz things up. Since we know he faxes, he may
need WinFax, which is far superior to Microsoft Fax.
3. If he bought a fax-printer-copier-scanner he may be interested in other office equipment – a color printer for example (he may have justified
that he did not need it initially but found quickly that he really required it for important pieces). He will certainly need supplies for the printer.
4. For his computer he will need more RAM or memory as software demands increase (maybe he will need this right away). He may need a
internal modem or a faster one down the road etc.
Can you see how the permutations are virtually endless?
Package Synergistic Products/Services
For a computer reseller, offering the training and installation as part of their “Beginner Package” may enable them to charge a premium while
differentiating themselves from their competitors. Perhaps it includes unlimited calls for 90 days, unlimited home visits, one half-hour training
program and a priority service line for one year. In contrast, the experienced computer user will not require or pay for such additional services
but they may want the latest state of the art gizmos, something the beginner has no need for. “The State of the Art Package” may include tons
of memory, a digital camera device and so on.
Other Ideas
Hardware
1. Turn your customers/clients into your sales force. Give (or send) each customer a coupon for $50 that they can use in your store if they
bring or send someone in who purchases $300 or more in upgrades or equipment. If you operate on a 25% margin, you will make a minimum
of $75 from the new sale and it will only cost you $37.50 ($50 minus your 25% profit margin). At the very least, you could use this strategy to
clear out long-standing stock.
2. Don't focus on your computers in your advertising. Focus on education. Start to inform the buyers what questions they should be asking.
Become the source of education. Yes, you might lose the "lowest-price" buyers, but more people may start to buy from you because you are
the established expert.
Software
1. The first decision you must make is that your business will aggressively incorporate very definitive risk-reversal into everything you do. You
will guarantee the transaction to the extent you can. You must make certain that every time you make an offer to a customer or a prospect for
them to avail themselves of your products or services, that offer has incorporated in it a very high level of risk-reversal.
A simple example might be, "If our software doesn’t do xyz, we’ll give you 110% of your money back, without argument or complaint." In most
places of the world, people are really afraid of making mistakes and looking foolish. You must completely guarantee or "risk-reverse" the
transaction, take away their fear, and make it foolish for them not to do business with you.
Computers