Know Your Customer Mix to Increase Sales

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In these heady days of social media participation and the demands on your time it is easy to forget to check in with some marketing basics.

Especially where increasing revenue is concerned.

One marketing basic is knowing the mix of customers you have for your business and how they contribute to your revenue.

For those of you not into crunching numbers or analysis stay with me as it is not that complex and can make a difference to your business.

There are a few ways to do this analysis and includes looking at the following areas relating them back to your sales results. One thing to remember is you are looking for trends and not just a week or months’ results.

Repeat versus new customers

Unless you are a new business do you have more new customers or do have regular customers who buy your products or services?

If you find you have more new customers it could be because of what you offer or the type of customer you are targeting. It could also relate to their experience with your business and products or services.

Ideally you have more repeat customers buying your products or services.

Customers’ buying frequency

This does depend on what you sell. However it is pretty logical if you can get your customers to buy more often it is easier to build strong customer relationships and enjoy regular sales.

Range of products or services bought by customers

If you find your customers are only buying certain products or services this may mean they are not aware of your range. It may also mean they may not be interested in what else you sell or you may be focusing on the wrong type of customer.

Again the more products or services your customers buy the easier it is to build customer relationships. It also provides opportunities to cross promote such as bundling your products or services.

Transaction value

If you find your customers only spend the same amount each time this can open up opportunities to up sell and cross sell to increase sales. It doesn’t have to be large to make a difference over time.

There are a number of reasons why tracking the mix of customers who buy your products and services is important including:

• Highlights opportunities to capitalise on to increase sales
• Enables you to be proactive rather than reactive with your marketing strategies and tactics
• Highlights potential gaps that could threaten your sales results if the trend continues

We often think marketing is just about communication and other marketing tactics, however it is often looking at the details such as your customer mix that can make a difference to your sales results.

Do you do this type of analysis?