The Life Cycle of Expansion
Your customer generally begins with one transaction for one product or one service. How long does it take before they buy or ask about another?
Yes, some might buy several things right away. Your focus should be on the growth of the sales amount, or the number of items/services purchased over a period of time.
A customer might buy a cup of coffee from you every day. Occasionally, they throw in a bagel or a sweet roll to enjoy as they drive to work.
The question is: How much time will elapse before they come inside, sit down, order a complete breakfast, consume it right there, and maybe order dessert or another item to go?
Customers expand their purchases for a variety of reasons.
Sometimes they do it overnight, sometimes it takes time and encouragement.
Your task is to see the general pattern, to know that over a certain period of days, weeks, months — sometimes even years, 80–90% of your customers will increase the dollar value of their purchases, or increase the number of purchases they make.
Know that cycle.
How long does it take, on average, for your customers to expand their relationship with you?
BEFORE YOU GO
We see our blogs as opportunities for dialogue. Please share your thoughts as comments.
What have you done in the past to track the expansion of your business?
What can you offer repeat customers as incentive to buy more?
What insights can you share regarding the cycle of expansion?
Faris Alami is Founder and CEO of International Strategic Management, Inc. (ISM). He works internationally, presenting Exploring Entrepreneurship Workshops and other entrepreneurial ecosystem — related ventures.