Know your lifetime customer value stats!
How many times (recently), let’s say within the last few months have you gotten either a post card or an email from a local company.
And for whatever reasons, you or one of your immediate family members has (temporarily) or permanently stopped doing business with them?
If you’re in business, right here is an excellent opportunity for you to put a pencil to the numbers in order to quickly discover the real long term profit potential available to your business and or service.
Simply by understanding and taking advantage of the overall lifetime customer value each and every one of your customers, clients, valued employees and or associates is really worth to you.
Once You Acquire A Customer You Can Profit Long Term At Least Seven Different Ways!
As you recall from a previous post, typically it cost you about 500% more in upfront retail cost, just to acquire that new first time customer.Right?
Which also means (you may) or may not earn a profit from their initial purchase or two.
And here’s how most business owners, (especially) cash starved small business owners and or service providers approach acquiring customers.
They typically will put 97% of their money, energy and focus on constantly trying to acquire new first time customers, (who) they probably initially lose some money on!
Neglecting altogether the enormous long term un mined profit potential in selling more products and services to their existing customers and clients. An ongoing marketing process often referred to as your “back end” marketing sales funnel.
Your Entire Sales Process Will Go So Much Smoother By Following A Basic Marketing Plan And Or Proven Strategy!
This is (typically) what really separates the successful small business owners from the 88% that will fail within the first 60 months (five years) or less.
Because savvy marketers (such as) yourself, recognize the enormous savings potential by eliminating that 500% upfront cost.
By marketing first to your existing customer/client base instead of constantly chasing after new ones.
With that said; let’s now turn your focus to the untapped long term profit potential, waiting to be maximized in strategically marketing additional products and services to your existing customer/client base.
Because there are (at least) seven different long term potential profit centers, that evolve around your existing customer base. Here’s how you can start profiting from them.
Remember though, not all of the profit centers are immediate. Some of them require you to be thinking both short & long term.
Seven Big Benefits From Marketing To Existing Customers…
Benefit #1.) After you acquire a new first time customer, (and provided) your wise enough to service and nurture the heck out of them. More than likely they can and will become (frequent) repeat customers!Right?
Benefit #2.) A happy existing customer is 300% more likely to frequently refer your business, products or services to others.
Benefit #2 A.) And if you’re an online business, (typically) your online customers that likes to refer your business to others, these type usually make your best commission only affiliates.
When Building A Marketing Plan Make Darn Sure It Also Includes Some Type Of Ethical Bribes For Referrals!
Benefit #3.) Because a satisfied customer is 300% more likely to supply you, (often) with those mouth watering, (bank account filling) testimonials in both written, audio and or video format etc.
Benefit #4.) Another really big plus when it comes to profiting long term from your best customers and clients.
Ask any successful man or woman in business and probably 97% of them ,(or more) will tell you that whenever there is any type of problem or conflict with a customer.
It’s always 500% easier to come to some type of amicable resolution, when you’re dealing with a long term satisfied happy customer, and or client as opposed to a new one! There is simply no comparison.
Putting Proven Processes In Place To Acknowledge Existing Customers And Or Clients Is One Of The Basic Components Of Marketing Plan Well Thought Out!
Benefit #5.) A current customer can also be one of your absolute best sources, on much needed feedback, for consistently generating practical new ideas, when it comes to effectively improving your business, products or services long term.
After all, they’re in the actual trenches, (perhaps) everyday when it comes to understanding the real pros and cons of your products or services.
So they know first hand, (unlike) focus groups, what really works (and) more importantly, what doesn’t!
Benefit #6.) A happy and satisfied customer can often be a untapped goldmine when it comes to generating quick cash.
Simply by sending them either an email or snail mail post card, and offer them tremendous savings in exchange for them coming to your showroom, or going to your web page and or affiliate sales page and spending money now!
Where as (typically) this exact same sales process would take a whole lot longer to convince, that first time potential new customer to make that all important first purchase.
Just By Knowing And At Least Partially Understanding The Total Lifetime Customer Value Metrics Definitely Gives You A Slight Edge Over Your Major Competitors!
Benefit # 7.) It takes a whole lot less effort to re-activate an old ex customer or client,as opposed to convincing a total stranger to become a first time customer!
Case in point. You could send an old inactive ex a customer a postcard that promised 20 (or X%) off their next three purchases.
Provided they make them within the next 90 (or X number) of days, with absolutely (no minimum) purchase amount required. 😀
Or if they go to your state of the art WordPress website, or somewhere like yelp.com and and write you a positive testimonial.
You will re-activate them at VIP status, plus give them X% off their next number of purchases, provided they make them within the next 60-90 days etc.
Consistently Testing And Tracking Definitely Helps Your Sales Funnel Become More Profitable!
Simply test, track and monitor and in very short order, you’ll know which approaches consistently produces the best response percentage.
Think about it. They save 10-25% on their next two-three purchases, but you’ll profit (long term) from their testimonials and continued patronage from now on! Will you not? 😀
When you put a pencil to it, can you see the real power of looking at the overall long term, lifetime customer value stats of each customer, patient and or client?
And why it’s really dumb, (and outrageously expensive) to intentionally piss off one of your customers or clients! Don’t you agree?
Q.) How many immediate ways will you be able to profit from your customers in the next 30 days or less?
As always,if you got any value out of this post, please Google Plus or tweet this. Thanks!
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