How To Get More Sales From Existing Customers

This post is in reponse to a question posed on Linkedin on the Independent Restaurant Owners Group News board by Tim Johnson.  It is in regards to an article in which he addressed the same question on Small Biz With Kids.com website.  See How to Get More Sales From Existing Customers

The formula for increasing sales amongst existing customers includes all the above: increase the frequency of visits through consistently excellent service and rewards programs; upselling; and suggestive selling.

The level and consistency of service that your customers receive will largely dictate the frequency of visits.  Quite frankly, customers are not too forgiven of inconsistent service.  Hence, every repeat customer is a testament to your service index.  Customers will, generally, tend to forgive poor service once or twice at best – truly, three strikes and you are out! 

While customers are generally inundated with reward programs; yet, the true of the matter is that reward programs work.  I can recall customers that frequently visited in the name of “American Express Delta Miles.”  Moreover, offering customers rewards for patronizing your establishment is always a good idea – we love to be rewarded for our good deeds (ask B.F. Skinner). 

Remember, the key to the success of any reward program lies in the theory of reciprocity.  The theory of reciprocity, as defined by Reference.com, refers to “responding to a positive action with another positive action….”  Thus, customers become loyal to your establishment because you first become loyal to them.  Hence, in a matter of time, they develop a sense of “obligation” to aid in your success.

In regards to upselling and suggestive selling, the success of any program used to persuade customers to spend more per visit largely depends on your staff and how well you train them to carry out these inducements.  Just to be clear, upselling is to suggest a larger portion of a serving or item, or a more costly serving or item than a customer originally intended on buying. 

On the other hand, suggestive selling is to suggest a complimentary item that is not already included with the ordered meal or item (i.e. a dessert, an appetizer, a drink, etc.).  Regardless, for all practical intents and purposes, the best way to carry out these types of customer inducements are through inside promotions and server contest of some sort.  Irrespective of how you may decide to execute upselling and suggestive selling contest; in the end, you and the server and the customer all win.