Posted on: Monday, February 4, 2002

60 SECONDS ON BUSINESS
Tips on improving customer yields

By Dr. Drake Beil
President, Solutions Inc.

Companies that become the best at improving yield from each customer have a considerable competitive advantage.

Let's look at restaurants as a good example. Increased food and beverage sales is their goal, whether it's selling more desserts or special drink programs for every lunch group.

If we used Assagio's or Alan Wong's as examples, what if every customer bought a cocktail, an expensive bottle of wine, an appetizer, salad, entree, chocolate dessert and a coffee?

Imagine the check for that person compared to the average guest. If you have 200 covers per day, and can get an extra ten bucks from each, that's worth $2,000 a day, $60,000 a month or $720,000 annually, plus tips.

Better yield per customer is developed with three key ingredients.

First, there's the yield-improvement specials themselves. You need to determine and decide where your best opportunities lie for greater revenues from your customers. Then keep the program fresh.

In the car rental business, for example, a lot of yield has migrated from selling accident protection to "upgrading" or "upselling" vehicles.

Second and third, in the search for greater yield, lack of inventory and poor training are the major obstacles.

You can't sell up if you don't have the fleet available, and you never can sell anything if the employees don't ask, and don't ask professionally. You need coordinated sales training designed to achieve the program goals. Ensure your people know how to ask for the business.

Reach Dr. Drake Beil at drake@60secondsonbusiness.