Analyze your sales data and identify some possible reasons why you have the decrease in sales. Then is useful to analyze the behavior of your customers.
The best tool for this purpose is RFM analysis.
RFM analysis is a technique used to see quantitatively which customers are the best ones. You can do this by just monitoring your customers:
How recently a customer has purchased something from your business (in this case identified as recency)
How often they buy from your company (in this case identified as frequency)
How much the customer spends on your business (in this case identified as monetary).
With the help of this technique, each of your customers will be classified according to the RFM score. The RFM score will have three numbers. Each of the numbers explains where is the specific customer according to recency, frequency, and monetary value.
Actions to Take When Your Customers Stop Buying
Analyze your sales data and learn from trends.
• Make RFM analysis.
• Create a strategy to improve RFM scores.
• Start with the implementation of the strategy for RFM score improvement.
• Analyze your competitors. Check if there is a possible correlation between their actions and your sales results and negative sales trends.
• Check the value you are offering to your customers. Is it still valuable?
• Install continuous improvement process to ensure permanent value adding to your offer.
• Check your pricing strategy. If you need to do something related to your pricing strategy, change it.
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