I attended a lunch and learn seminar at the Elgin Business Resource Centre taught by John D. Allen. It was called “How to get up to 50% more revenue from your current clients/customers without spending extra money!
I wanted to pass on my thoughts and ideas as this pertains to my Mary Kay business. Hopefully this will get other MK consultants thinking and implementing some new strategies to increase revenue.
Do you know how much it really costs you to get a new customer? My answer was NO. I’ve never thought to figure it out and most of my new customers come from shows that I pay to set up a display in. That’s probably the most expensive way of going about getting a new customer (except for me it’s the most fun). So the most cost effective way of getting new customers is through referrals and at parties.
Do you know the average sale of a new customer? I’m going to estimate my average sale to a brand new customer is $85, which is the retail price of the TimeWise Skin Care Set. Again, as a business person I should do some number crunching and make sure this is correct.
I also am assuming my average reorder sale to current customers to be $50, but I really have no idea if that’s true.
I need to focus on the LIFETIME value of a customer and maintain them through excellent customer service. I feel that I give average customer service, but there is always room for improvement. I guesstimated the LIFETIME value for one of my MK customers would be 2 TimeWise sets a year for 5 years. $85 X 2 X 5 = $850 retail sales
I could be increasing my revenue by having them buy more items from our product line than just basic skin care.
There’s 3 ways to increase your Mary Kay revenue. 1. Get more clients. 2. Have the clients have buy more. 3. Have your clients buying more often from you.
100 clients buying $85 twice a year = $17000
What if you increase by 25%?
125 clients buying $106.25, 2.5 times a year = $33203.13
What if you increase by 50%?
150 clients buying $127.50, 3 times a year = $57375 WOW! I want this amount of sale please!
68% of customers leave a business due to not feeling appreciated. Make sure your customer service is excellent.
Educate your clients on ALL the products and services you offer. Do they know other than skin care that Mary Kay has body care, fragrances, men’s products, sun care, cosmetics, and new products every 3 months to match the fashion trends? Do you offer to get together with each customer every quarter to show them what is new? Remember it’s an offer that they can accept or decline, but offering is part of your service as a Professional Beauty Consultant.
When taking a reorder or getting on order at the party: 1. Get their original order written on the sales receipt. 2. Bridge to the add on by saying – “by the way”, “incidentally”, “before I proceed with your order”, “another service I offer is”. 3. Present the add on and it’s benefit. 4. Close (eg. “would you like this delivered on Friday with your other items?”
So a conversation could go something like this.
“Susie I have your Beige 300 Medium Coverage Foundation, Raisinberry Lipstick, and Satin Lips Lip Balm you asked for. Incidentally, we’ve come out with a new Foundation Primer, the secret weapon celebrity makeup artists have been using for years to extend the wear of foundation and give you a flawless finish. Would you like this delivered on Friday with your other items?”
By adding on 1 item to every sale you already are getting could really increase your revenue. Visit Product Central on http://www.mkoc.ca and visit all the Product Fact Sheets. Mary Kay has already listed other products to add on or cross sell.
Angela’s To Do List: 1. Always offer an add on or cross sale item with every order. 2. Offer every current customer to get together to see the new products every 3 months when the new catalogue comes out. 3. Make sure all customers know all the product categories Mary Kay has and that I offer wedding and special occassion makeup application.