The 2nd Purchase
There is a critical moment in your customer's journey with you, where you figure out how much revenue potential there is for you with this client. And guess what? It's not when they buy from you the first time. It's when they buy from you again.
That's because for most B2B businesses are looking for long term relationships with vendors vs. one-off transactional purchases.
Businesses that figure out how to make that repurchase easy and valuable for the customer end up with higher revenue and better margins. Here are five questions to help you optimize that repurchase process with your clients.
What are they buying?
Is it more of the same - maybe an annual subscription? Or an upsell or cross-sell?
Is it accessories or consumables?
Understanding what they're buying allows you to figure out how to share with them how you can provide that and be in the right place for those purchases.
Also, is there anything that they're buying together? Bundling opportunities are another way to ensure that you're in line for the next purchase.
Who is doing the buying?
It might seem obvious. But there are many cases where purchases after the original solution are made from a different department or function than those that you worked with to get the initial deal.
When are they buying?
What happens in their business that triggers a purchase or repurchase?
This is critical information that can lead to a huge opportunity. If you know what that trigger is and you can observe or measure it ,then you can be proactive and be ready for it. You can also more accurately forecast what your opportunity is.
You might also be able to induce that trigger. If there's something that they're waiting for that you can provide for them, you have the opportunity to accelerate the purchase.
How do they buy?
What's their process?
Do they have requirements that, if you took the time to meet, would make the repurchase process easier or faster?
Are there fast track opportunities - some shortcut that if if you had capability or a certification, you could skip some steps?
Understanding this process is so important because it continues to pay for itself over time with every additional purchase.
And then finally, why you? What is your relationship with the customer?
Is its strategic or did they buy from you because you were the cheapest?
You don't have to be strategic with every client, but you do want to know when you are and when you aren't so that you can invest the right amount of time and attention to that relationship.
Taking the time to understand exactly how your customers buy again may be more important to your business than the first time they buy from you.