business growth strategies - what's a customer worth to your business?
TRANSCRIPT
Business Growth Strategies“What’s A Customer Worth To Your Business?
To effectively grow your business, you’ve got to focus on 3 things..
1. Attract a constant stream of new customers
2. Get them to spend more money on every transaction.
3. Get your customers to buy from you more often.
Did you know…
One of the fastest ways to increase your business is to maximize your profits from existing customers.
Do you know…
How much each customer is worth to you now?
How Much Would You Spend To Acquire A New Customer?
The fastest way to figure this out is by calculating the Lifetime Value Of A Customer>
It’s vital to your success for 2 reasons
Reason #1 - You’ve got to know where you are before you can determine where you’re going. This gives you a starting number.
Reason #2 – Until you know how much each customer is worth, you won’t know how much to invest in marketing to acquire that customer.
How To Calculate The Lifetime Value Of A Customer To Your BusinessLet’s get started…
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You’ve Got To Know The Following Numbers..
1. What is your average sale?
Add up your total dollar sales for a year and divide that by the total number of sales transactions.
2. How many times a year does an average customer buy from you?
Take total number of sales per year and divide by total number of customers.
3. How many years does an average customer buy from you?
In most cases, less than 5 years.
4. How many people does your average customer tell about you?
Usually between 3 and 12.
More calculations…
5. What percentage of these people actually become customers?
Usually between 20% and 70%.
It’s Your Turn …
$23,489What’s your number?
How much would be willing to invest to get your customers hooked on buying your product and service?It’s a powerful tool to steal customers away from your competitors!
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By knowing how much you would be willing to give up to acquire a customer, you can use this investment to secure multiple marketing distribution channels. This
is especially useful to you if your business relationships are one that has multiple business
transactions from each customer.
This will become one your most powerful tools in your marketing arsenal once you master it!
How much is each customer worth to you? If you want a copy of the customer lifetime value worksheet, send an email to [email protected]
For more information or to arrange a complimentary session with a marketing implementation specialist to
explore the opportunities in your business, email [email protected]
Want more details, click here www.mentureme.com/howwehelp
Any Questions ?