Why Strategically Providing Value To Customers Is Definitely The Way To Go!
When you take a hard look at your current marketing tools or assets. Do you seriously consider constantly providing value to customers, yours or otherwise as an extremely valuable asset or not?
You definitely should. Because systematically doing so definitely lowers both your initial front end and long term back end customer/client retention costs. Investing in educating your customers on the initial front end.
Lays the ground work for your customers or clients not only enthusiastically hanging around X% longer. But usually purchasing more and periodically referring you new business for literally pennies on the dollar. This lowers cost while simultaneously increasing your front and back end gross profits.
Any time you and I can lower ongoing costs. (Especially the larger ongoing front end expenses. It takes a huge amount of stress and pressure off the operational costs and running of the business or service.
Wanna Know How To Increase Brand Equity Through Top Notch Customer Service?
Back in the day there was an incredibly successful real estate info-preneur guru. Who initially started out hosting local, then national three day workshop events.
And from the success of these events his publishing and marketing company started running very successful, direct response type of 30-60 minute info-mercials on various times all over late night cable TV.
These incredibly successful shows led to a ton of national TV and radio appearances. And a gazillion articles both pro and con about both his various companies. And the creative real estate investment strategies and tactics he advocated in both his books, tapes, live two-five day events etc.
His incredibly popular 5 day “millionaire Maker” Bootcamp events. And of course his bread & butter home study course(s.) The main one his company sold via his 30-60 minute info-mercial retailed for $295 dollars.
And customers were able to ask for a full refund up to a full year (12 months) after their initial purchase. (Provided they met certain conditions of course.)
How Catering To His Customers Requests! (Opened The Door To A Previously Untapped Marketing Opportunity!)
At one point during his entrepreneurial journey. His incredibly popular, weekly 30-60 minute cable TV infomercials was one of the longest running for it’s particular category in American television history.
And his extremely marketing savvy publishing (by now) was strategically offering each customer who either:
A.) Purchased his $295 dollar home study course.
B.) Or they purchased separately one of the workbooks from his popular home study course. Or one of his six or twelve cassette tape programs from the other stand alone educational products he sold.
C.) Or if they attended one of his companies free two hour introductory workshops. Whatever the case was. They all got a free three month trial subscription to his monthly newsletter.
Which retailed for $127 dollars per year. His statistics told him on average. About 40% (give or take) would upgrade to the full 12 month subscription at the current retail price.
And here’s where things got not only very interesting. But extremely profitable too.
Sometimes You Start Out In One Direction! (But End Up Taking An Entirely Different Route!)
Once this popular guru started publishing his best selling books. And traveling the country with his free two hour introductory workshops. And his many national radio and TV appearances etc.
Some of his best and therefore most success student/customers started approaching his company letting them know they had discretionary income they wanted to invest in various types of income producing income all over the US.
And soon his publishing company started advertising initially in his monthly newsletter. How any students or non students could be added to his database. And make both current and future students aware they had money they wanted to invest in various types of real estate projects.
They would be entered into this -what would ultimately become) this massive database. And these potential lenders filled out a pretty detailed online form. So the students knew.
A.) What type of properties they were willing to invest in.
1.) Single family homes only. 2.) Duplexes only. 3.) Apartment units only. 4.) Vacant land only. 5.) House or duplexes or apartments in the pre-foreclosure process. Or properties, (with the exception of vacant land), which had already been taken back by the lenders.
B.) The maximum amount they were willing to invest.
And The More You Can Tailor Or Customize Your Particular Services! (The More Lucrative They Will Be Or Can Become!)
C.) The priority lien position they were willing to invest in. Either a first or second position only. And no third positions. (Or if they were open to holding a third lien position on any type of investment property. They indicated this on their form. But clearly charged a higher interest rate on lower priority position liens. And offered a shorter term on third priority lien positions. )
D.) The maximum loan to value (LTV) ratio they were willing to invest in.
E.) What parts of the US they were willing to invest in. (Or what specific areas they were definitely not interested in investing in.)
F.) They also indicated if they were interested in having students submit any potential deals they legally had under contract. (Using the “Buyers and or assigns” clause in the offers they got accepted.) And if they and the students could agree on a price. The students could submit their deals to the entire database for no additional costs.
And As The Network Continuously Grew And Grew! (Word Steadily Begin To Spread!)
Because the student/customers were already paying an additional $19.95 per month to access it. But the database was free to the investors to access. And any none student/customers paid $49.95 to access these same investors.
Which led some of them to invest in the main $295 dollar home study course. Even though they have no intention of using it. Some of them invested in the course. Then immediately ran ads advertising the course. And simply chose the individual or local couple they felt would actually follow through.
And these individuals now had a sophisticated local financing source. Who could either.
1.) Provide some sort of financing for these investors first few deals. 2.) These local cash strapped investors could simply develop the skills to go out and legally tie up properties. Then assign their contracts to this and other investors for anywhere from $1,500- $3,000 dollars per potential deal.
G.) If the investor wanted to also share in the back end gross profits once the properties were sold 3-7 years later. They charged less interest on the money they provided to initially close on the property.
A Really Good Network Is Definitely Worth More Than It’s Weight In Gold! (don’t You Agree?)
Because some of the more savvy real estate financiers in the database. They were looking to finance real estate syndication projects on the front end. But also receive at least 25-50% on the resale value within the next 3-7 year period.
The bottom line being. At it’s peak. Before his company was basically fined and ultimately shutdown by the federal government. This gurus private investor database had a staggering 10,000 members nationwide. (And likely would have kept growing.)
Which meant they easily had at least 8 figures or multiple 8 figures worth of investment capital and credit and real world experience to finance practically any type of real estate projects nationwide.
What initially started as a courtesy to a hand full of his companies students and none students. Ultimately grew into an entire thriving business of it’s own. Which is proof positive “why” strategically providing value to customers is definitely the way to go. Don’t you agree?
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