Calculating Lifetime Value Of A Customer: Three Simple Ways To Build It And Profit It From It! Part Three
As you discovered in part two, understanding and calculating lifetime value of a customer stats is a must, don’t you agree?
It’s a shame the vast majority of cash starved small business owners and or service providers.
And (probably) a staggering 95% or more.
Are totally in the dark when it comes to fully grasping this incredibly important concept.
In part two of this powerful series about calculating lifetime value of a customer.
You saw how a savvy marketing genius like Robert Allen made a perpetual fortune (each month), simply by leveraging his VIP opt in email subscribers.
And doing a completely logical and brain dead simple joint venture (JV), with another successful entrepreneur.
And the net result was both he & Dean Grazioso made a fortune in our hypothetical case study. Did they not?
How You can And Should Profit Big Time By Strategically Calculating Lifetime Value Of A Customer Stats!
Before you move on to three more powerful examples of how offline businesses can definitely benefit from this proven concept as well.
Here is (hopefully) one more potentially profitable example to get your creative marketing juices flowing and your bank account bulging!Sound good?
Remember in part one of this series, Dean Grazioso was offering an offline week long, advanced “Millionaire in the making” boot camp? And it normally retails for $10K per person or $16K for any two people.
Well suppose,for just a second that an entirely separate Real Estate seminar education company, (that) currently tours the country, was charging the exact same prices for their week long boot camps. 😀
You Can Definitely Build An Extremely Profitable Sales Funnel Simply By Power Networking With Non Directly Competing Vendors!
Can you see ‘how’ because they know exactly what their customers total lifetime value metric is, they could do (what’s) often referred to as a marketing reverse? Huh?
Meaning- they could go and find a fairly well respected publisher that sells hard cover books about Real Estate investing or subject X.
And arrange to buy a gazillion books at cost, and start letting the author(s) give them away (via) their special lead capture page website.
And let the authors, with relevant content, start using these books or whatever the actual giveaway is, as free upsell bonuses, and free secondary gifts just for entering other free drawings etc.
But when the author’s fulfillment company mails out the actual books to the customers, the author includes a market tested insert, offering the Real Estate educational companies free lead generating postcard.
Your Marketing Funnel Can Be The Back End For Another Non Directly Competing Vendor!
And the recipient can enter into a free drawing for a chance to win a free $997 dollar digital version of one of their niche courses.
For ex; ‘how to’profit from lease options in today’s volatile Real Estate market!
Or a chance to win a free $10K or $16K pass to their offline week long boot camp! Either way, whatever money the recipients end up spending, the author(s) earn a 25% affiliate commission!
Would You Rather Have A One One Or Two Percent Royalty Check On Twenty Thousand Copies Or Twenty To Fifty Percent Lifetime Commissions On Ten To Sixteen Thousand Dollars!
Think about it for a second. If you were the authors, would 25% of $997 or 25% of $10K or $16K be worth giving away several hundred thousand copies of your book! Yep! 😀
New authors make squat in terms of royalty checks! It’s not until you are a bankable established author do you earn any really big money strictly from publishing books.
(That’s not to suggest that a savvy author couldn’t and shouldn’t leverage their status as a published author with a major book publisher!)
The reverse part simply means you started at the top of the scale and worked the joint venture from there. Entrepreneur, does this give you any new marketing ideas and or possibilities?
How Offline Businesses Can And Will Profit Big Time By Calculating Lifetime Value Of A Customer Stats!
Now for those skeptics reading this (who) sadly are still convinced that this type of brain dead proven marketing strategy only works for on or offline information marketers.Nope! It doesn’t matter what your specific niche is.
Let’s see how three separate (hypothetical) offline local businesses can and will profit from calculating lifetime value of a customer stats, and adjusting their short & long term marketing strategies accordingly.
For this hypothetical example; let’s see how a local restaurant owner, furniture store and finally how a local bar that caters to college students and other young adults, could use the lifetime value of a customer concept to reap huge long term profits.
Make Lead Generation An Ongoing Component Of Your Marketing Mix!
1.) First off here’s how a local restaurant might capitalize off, (in essence) creating repeat customers for pennies on the dollar and earning a lot more money in the process.
Take their traditionally slowest day(s) and or slow parts of the year and realize that the more they can induce customers back, the less they have to spend trying to create (outrageously) expensive new first time customers.(Like their major competitors do.)
So they might (inexpensively test) allowing kids 12 years old and under to pay what they weigh! Come on Mark,not that old marketing gimmick again! Yep!
Just Understanding The Lifetime Value Of A Customer Concept Gives You A Decided Edge!
But with a nice marketing twist of course! It’s only available to parties with at least three kids under 12 or more! Meaning- the adults have to bring at least three kids twelve and under with them!
Think about it for a second. How much can your average 3-12 year old eat! And they can’t come without the adult(s!) But here’s how a savvy marketer like you leverages it.
Every group that has a party of five or more, (meaning) at least two adults over 21 and at least three kids 12 and under.
A Customized Marketing Funnel Potentially Can Create Multiple Streams Of Income!
Your party automatically gets entered into a free drawing and whichever party draws the winning number.
They get 50% off whatever their total bill is! (And if they spent over X amount and their number is drawn, the entire meal is free! 😀 )
That’s grand first prize, second prize is three free drinks for three in the party, and third prize is one adult and one kid get’s a free dessert!
Which family orientated restaurant do you think a cash conscious family will choose!
2.) Now most of you already know the tremendous markup that exists in retail furniture sales correct? Routinely it’s anywhere from 300-500% or more! 😀
Don’t Be Afraid To Get Creative With Your Sales Funnel!
So if the furniture company decides to discount (or closeout) sale that couch and love seat that originally sold for $1,595!
And now it’s going for just $599! They basically have a difference or spread if you will of $996 dollars! ($1,595-$599=$996.)
Why not take the basically $1,000 dollar spread and use to in the following creative ways to generate repeat customers.
Just Make Sure The Vast Majority Of Your Entrepreneurial Ideas Are Customer Service Based!
Right before each paying customer leaves your store (depending) on how much they spent, have two grab bag boxes. One for purchases over $500 dollars and one for under $500.
If they spent $238 dollars get they a coupon good for 10 (or X%) off, (but) as long as they return with a new potential first time customer (whose over) 21, and that new person joins your VIP opt in email /mobile marketing list on the spot!
There Are Sometimes Which Are More Advantageous Than Offers To Implement Some Direct Marketing Strategies And Or Tactics!
The current customer automatically gets and additional 10% (for) a total of 20% off their entire purchase, with (absolutely) no minimum purchases required. 😀
Plus, they get a $20 dollar gas coupon as well. And for the $501 dollar purchasers and up, they get a coupon for 20% off, and an extra 10% (for) a total of 30% off.
Again,with absolutely no minimum purchases required and they automatically a $50 dollar gas card.
Anytime they spend over $1,000 dollars, they save 30% off upfront, plus an additional 10% (for) a total of 40% off for bringing a new first time customer and a $100 gas card to boot!
Rather than just waste tons of cash on expensive traditional advertising. Why not instead (strategically) bribe your best customers to build your customer base for you!
It’s Really Easy And A Lot Less Expensive To Create Some Powerful Long Term Word Of Mouth Buzz Advertising!
3.) And lastly, here’s how your local bar might induce their patrons to systematically spend more money, each time. Basically, create two super cool grabs (one) both women and men that buy the most expensive beer and that spends over X amount of dollars for food and drinks.
For ex; anyone that spends over $20 dollars ( or X) for burgers, wings and a few beers etc. They automatically get to reach into one of the grab bags and include some really cool stuff like (upscale) women-s earrings and bracelets!
That’ll create some long lasting positive word of mouth (buzz) advertising.
You Definitely Have All The Flexibility You Need With The Right Direct Marketing Campaigns!
Create instant double discount coupons, 25-75% for pitchers of beer. Free wings, burgers, free passes for two and of course free drinks etc.
Also create special (limited) time discount coupons that entitle the holder to three free beers, and or drinks on their next visit, provided by they bring at least two new paying customers with them!
And on and on! Have some fun, get creative! Your bank account will grow as a direct result.
As always, if you got any value out of this post, please Google Plus or tweet this. Thanks!
And if you’re currently registered on Linkedin or twitter,and you’re serious about about doing
some type of power networking.Let’s get connected asap!
Extremely important note:And if by chance, you happen to know any of the lesser known podcasters,who also target,small business owners,service providers or aspiring startups
entrepreneurs etc.
And they’re pro-actively looking for potential guest speakers.Please don’t hesitate to-either- pass their name and contact information directly to me or vice versa!Thanks!
And be sure you grab your explosive free 22 step small business marketing idea kit series. It’s a $97 dollar value and it’s free!
