Whether you’re a big time cake seller or a small home based baker, you know how painful it is to have a customer leave you and go another baker or your competition.
It hurts. It makes you feel you are not good enough. You start questioning your abilities and wonder what the other baker has or is doing better than you.
Competition is not nice, especially when you’re the one losing. But that’s business life. When you are running a business, you’ve got to face the fact that you are going to face competition, somewhere down the line of your business journey.
So how do you deal with the competition?
There are plenty things you can do but the best approach, however, is to do all you can to keep your existing customers. Your customers are essential to your business because no customers= no business.
Luckily, there ways to prevent your customers from going to your competition or leaving you.
These tips you are going to learn will help to keep your customers loyal to our business so that you will have a customer for life.
- Know your customer
Have a thorough knowledge of your customer. You should know your customer — even if it is just their email address and birthday.
You may ask why does it matter?
Having a thorough knowledge of your customers such as their demographic, occupation, age, gender, motivation, hobbies, will help you know how to attract a customer and serve them better.
If a customer decides to order a cake from somewhere else. You should try and find out why they left. You can send them a feedback form and structure your questions to find out what are their motivating factors for ordering a cake
Understanding your customer better will help you hold on to them.
- Know your competition
Know who are you dealing with. Do you know where your leaving customers are going?
The first thing you should do is to discover which of your competitors the customer prefers, and they prefers them. You can simple ask them or try doing some undercover work on the competition.
Find out what types of cakes they are selling, do they have a website, how much are their cakes, how are their designs, what additional services do they offer their customers.
A simple fact could be that the competition makes it simpler for people to order or their prices are cheaper. With this information you can now look at your business and see where you can make changes.
So do a little spying of your competition. You may be surprised at what you will find out.
- Get your USP Right
What is your unique selling proposition or USP.
A USP is the reason why your baked products are different from the rest. What makes your customers prefer you more than the other bakers.
Your USP is the reason why your customers decide to order from you and why they decide to remain with you.
Think about something in your business that makes it different from the rest. Your business is unique; it has its own personality. So think about what makes you distinct and special. Do you make awesome cupcakes or your cakes are fat free. Take a few moments and think on this.
- Try Incentives to make your customers spend more.
One way to keep your customers is by upselling.
Here’s how it works.
A customer calls you to make an order. Great, but they only ordered 6 cupcakes, which is like 3k. Not much of a sale right?
Your next goal? Get them to spend more money.
You could tell them that if they spend a little bit more money they can get a dozen or more cupcakes and you will throw in free delivery.
Why? When a customer spends more money, they value the product more if they spend additional money on it. So it will make them harder to leave
The more your customer pays and the longer they stay, the more likely they are to spend more.
By encouraging upsells, you’ll prevent your customers from leaving.
- Reward your customers for doing something for you.
Reward your customers in some way. Give them a freebie, a gift, a discount, voucher Make it valuable and desirable.
But before you give them something for free, make sure they do something for you. Something like what? Make them promote your business. Tell them that if they refer your cakes to someone and that person makes an order, they will get a free cake or cupcakes for their next birthday.
If a customers gets something from you for free, they are most likely to be singing our praises to other people and think of you when they want a cake.
This practice works, because it’s built on reciprocity. Reciprocity is simply just a mutual exchange. It means giving something to someone thereby motivating them to return the favour.
In summary, knowing your customers and your competition is the way to get started, them with that information, you can hone down on your USP, try to make your customers spend more and then give then freebies for dong something for you.
In the end you could have a customer for life.
Hello, my name is Rotimicakelady and I am a cake business coach that teaches cake business owners how to grow and have a profitable cake business so that they have a constant stream of customers buying their delicious treats.
I have been running my own successful home based cake business for some years now. I have also been teaching bakers through my online courses who are struggling with low sales, with strategies on how to market, and price their cakes for profit.
In addition I am also run a Facebook Group where I coach, offer support and help bakers in their businesses.
I have helped over 50 bakers through my online course ‘A comprehensive guide to starting your cake business in 30 days’ with much needed information on how to start a cake business in Nigeria. I also teach close to 4000 cake enthusiasts through my Facebook Group how to run a money making cake business.
I have been featured in ‘Naija Top Baker’ magazine, one of Nigeria’s foremost cake magazines and also been a Guest Speaker at the Bakery World Convention.
If you are struggling with getting customers for their cakes, I can help you solve this problem by showing you how to market, sell, price, plan, structure and brand your business so you are constantly selling to the right people who want your cakes