Working on your business - Know your customer
Hope everyone thought about their products last week and listed the ones they thought were their top selling lines and also those which did not do so well. One of my friends Jenny told me that her top selling product was the “melting moments” cookies and she sold 30 dozen on Mother’s Day. I could not agree more. Her melting moments are the best in the market!
Hope you have also researched about good POS systems and accounting systems which add value to your business.
The next step is to figure out who is your customer? What do they like? How can you make them stay with you a long time? It is a well-known fact that it is much cheaper to sell to an existing and loyal customer than to find a new one. In business, a customer is probably the most important link in the chain as they drive your sales.
To put this into perspective, have a look at your Coles or Woolworths loyalty cards. I am sure everyone has them. You have to spend around a $2000 to get rewarded with around $10. But in order to get the rewards, you have to tap the card when you spend. Everytime a card is tapped, valuable information reaches the marketers. They link your profile with the stuff you buy. They keep throwing offers at you and try to see what you buy at what price.
Within the past three years or so, I notice that every store has a digital card these days. They even track you with your phone number. The Coffee Club, Jamaica Blue, Kikki.K, Lovisa, The Bodyshop, Lorna Jane, Cotton On and even McDonalds – you name it, they have it. At McDonald’s they have replaced the paper card with the app. Now you get free coffees only if you have an app.
How do you track your customers and their changing preferences in your business?
Why is in invaluable? That is so because it would collect data for you and allow you to tailor your products towards their needs. This would decide if your menu would have more smoothies or more ice-cream shakes. Would you rather have more salad-based lunches or steak burgers? Or would you rather have plant-based protein or animal based one? Or sugar free desserts or real sugar ones? Would you rather have more bubble tea or green tea?
If you are not a café, you could apply it to any product you sell. There are a lot of companies which bring the loyalty package to you including digital cards. Research them and see if they will add value to your business.
This brings us to the moral of the story. Make sure you know your customer’s spending preferences. So that you can stay on top of the trends and profit no matter what.
But of course, that is possible only if your team is versatile. It does not get hung up on what it has always done. It is ready to change. Because if you are not committed to your consumer, the consumer will move on!
I will discuss that in my next article.
With love from Parul and Wagga Accounting