Who Says Higher Customer Acquisition Costs Automatically Mean Less Long Term Gross Profits!
As you take careful notice of the initial front end acquisition cost of your business and or service.And at practically every turn.
Your various promotional and or traditional advertising costs, are only headed in one direction, correct? Agreed.
So you’re almost forced, whether you want to or not. To start developing and or implementing, some type of proven marketing strategies and or tactics.
Primarily designed, to both lower your initial front end marketing and or promotional costs.
Plus, help you or your major competitors, consistently acquire, semi qualified, brand new first time customers and or clients.
And while all of this pro-active business activity is constantly taking place.
Here’s what you definitely need to come to grips with asap. Just because your front or back end, customer acquisition cost steadily increase.
This doesn’t automatically have to mean or ensure. Your overall gross profit margins, automatically go down. As you’re about to discover.Of course, if you’re not prepared, by knowing how or which particular, revenue generating strategies and or tactics to constantly implement.
And which ones to halt altogether. It’s highly unlikely, your semi cash strapped, small business and or service, will steadily grow, to it’s fully earning capacity.
Hopefully You Can And Do Appreciate How A/B Split Testing And Tweaking Your Various Marketing And Or Promotional Strategies Can And Will Lead To Some Major Profit Producing Opportunities!
Case in point. Suppose you currently own and operate, a single location, mom & pop computer repair service. And even though, you haven’t actually put a pencil to the numbers just yet.
You still clearly recognize, your ideal, non business owner customer, has a current, total lifetime customer value metric, of somewhere between, $100- $1,500 dollars. Give or take over the next five to seven years.
And your ideal, repeat business owner customer, typically has a total lifetime customer value metric, of somewhere between $500- $6,000 dollars. Give or take over the next five to seven year period.
But the good news is. You are more than happy, to increase your initial front end, customer acquisition cost, especially since, doing so, almost positions your long term, back end profit producing potential by at least 25-40% more.
And the primary reason being.Going forward you’re going to pro-actively market and promote, your various products and services to your front end customers, inner and professional inner circle.
Why Strategically And Pro-actively Marketing And Promoting To Your Initial Front End Customers Or Clients Back End Is Truly The Secret Sauce Of Continuously Growing Your Business And Or Service!
So here’s the basic meat & potatoes, of your overall, front end, marketing and or promotional strategy. First of all, unlike the vast majority of your major competitors.
You’re constantly on the look out, for some proven ways, to generate, some high impact, potentially bank account filling marketing leverage.
Which easily explains why, you will allow, one of your long term, repeat customers, who runs a rather small, (seven person) CPA (Certified Public Accountants) firm.
You mention to your CPA firm owner customer, a brand new service.Where you’ll gladly allow local small business owners, service providers and or start up entrepreneurs etc.
You’ll gladly set up, (both) their office and home computer networks, for a combined, one time, discounted price of just $297 dollars.Or X. And they’ll easily save at least 45% off the normal retail price.
But obviously, your real reason for doing so, involves you, getting direct access, (not only), to the small business owners immediate family and professional inner circle.
But, far more potentially profitable.Especially over the time.You clearly realize and fully appreciate, simply by connecting, both the business and home computer networks, for influential, local men & women, who run successful small businesses or services.
For such a low price.They won’t be able to contain themselves, right?
Continuously Give Your Ideal Customers Or Clients Reasons To Spread The Word About Your Extremely Valuable Products And Services!
Clearly, your front end customer acquisition cost, will definitely go up by X%.because you’re offering a higher discount, in order to create a perpetual profit funnel.
Right?However, where the real long term profits, will continuously more than offset your rising front end customer acquisition cost.You know they’ll be constantly texting, posting images and or some really cool videos, all over social media, correct? Absolutely.
And part of your joint venture (JV) arrangement with your CPA customer is this.The CPA owner will periodically, (once about every 90 days or so), offer, your extremely discounted, combination price, for setting up other local small business owners and service providers, business and home networks.
For an extremely affordable price.For an extremely limited time.Yes your front end customer acquisition cost will definitely increase.
But the dramatic increase, in both long term repeat customers, referrals and video or audio testimonials. Will definitely minimize these additional front end cost.Don’t you agree?
This is how and why, higher, front end customer acquisition cost, don’t automatically mean, you’ll experience lower overall gross long term profits.Don’t you agree?
Are You Starting To Appreciate Why Higher Front End Customer Acquisition Cost Don’t Automatically Mean Lower Overall Gross Profits!
P.S.Now as is customary during this part of our show.Please share your extremely valuable comments
(in the comments section below) that you can apply to your business,product or service in the next 30 days or less!
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