Successful to unsuccessful tenders

Category: Sales KPIs.

As an entrepreneur who is passionate about the services that you are selling, in an efficient way, you will need to have a clear picture of what your customers’ need. For this to happen, you have to consider a number of things – among which some of the most important are sales analytics.

Having a business that does very well on the market is necessary to keep you motivated – and when things take a bad turn, you need to know what to change in order for it to get back on track. Your sales should be constantly monitored, and you can do this in a number of ways.

The most efficient way is by using the form metrics – which will optimize your activity and help your business by increasing its performance. This will also offer you and your team the clarity regarding the services you are trying to provide. One of these important metrics that you absolutely must consider is the order frequency.

What is the Order Frequency?

When it comes to Order Frequency, you have to think of it as a strategy aimed to increase the frequency of customers that make purchases, visits, orders. The goal is to improve the profit contributions these strategies bring.

Order Frequency requires you to identify which customers fall under the “best” category. These customers should be rewarded for their loyalty in buying what your business is selling – which you may do by having loyalty programs.

In the end, these programs encourage them to continue this tradition of buying what you offer. One of the best ways of applying this is by giving the loyal customers a discount or to offer them a product or service for free.

This should be done after a certain threshold is achieved through repeat purchase. Many marketers believe that this could also help companies better understand the benefits that the business gets from applying for such programs.

One thing that the business should consider is that, while the customers will start buying more (because of the rewards they get for doing so,) some may not do so in the long run. Customer loyalty may be short-lived if the strategy is not renewed from time to time – mostly because other competitors might seek to implement better rewards for loyal customers.

Another thing to consider is that the cost of applying an order frequency marketing targeted to customer retention is cheaper than trying to market for customer acquisition. For every percent you are spending on customer acquisition, you should spend half of that percentage for customer retention. The formula of this metric is:

Number of Orders in Time Period / Time Units [Days/Weeks/Months] in Time Period

Order frequency should be applied to every business because every major and successful one got to their status – all thanks to their customers. Besides order frequency, there are other marketing metrics that you can make use off – but this one is the key to making sure you are successful. Customers are the ones that bring in the money – and when they stop coming, so does the business’s success. When they feel appreciated they will continue to come.

Related Articles