Obviously, if you want to double your business in six months or less, you've got to sell a whole bunch of whatever it is you sell -- to a whole bunch of customers. If you're like most of the entrepreneurs we work with,you're already attracting a stream of new customers. It may not be a flood or even a river, but it's a start. Well, one of the fastest ways to increase your business is to maximize your profits from these existing customers. You'll be absolutely astonished when you see how much easy cash you're letting slip through your fingers right now (but don't kick yourself too hard, we're about to fix that).
We'll plug these gaping holes in your profitability in a
moment, but first, let's see what each customer is worth to
you now.
One of the major concepts you need to understand is The
Lifetime Value Of A Customer. This is an actual number
specific to your business.
It's vital to your success for two important reasons...
First, you've got to know where you are before you can
determine where you're going. This gives you a baseline
number so you can track your results.
And secondly, until you know exactly what each new customer
is worth to your business, you won't know how much money you
can spend in marketing to get that customer.
Soon, each of these new customers we help you bring in will
immediately represent much more in bottom-line profits to
you than you've ever thought possible. And, you'll know
exactly what to do to increase your business even more.
But before we get into the nitty-gritty of how we're going
to do this, let's take a look at what a customer is actually
worth to you.
This is important, so please take a few moments to figure it
out right now, as we explain it.
How to calculate the lifetime value of a customer to your
business.
Before you can figure out exactly what your customers are
worth to you, you've got to know a few things about your
current business.
What is your average sale? (Simply add up your total dollar
sales for a year and divide that by the total number of
sales transactions you completed.)
How many times a year does an average customer buy from you?
(Take your total number of sales transactions for a year and
divide it by the total number of customers.)
For how many years does an average customer buy from you?
(Remember, 20% of the population moves every year, so this
should probably be less than 5 years.)
How many people does your average customer tell about you?
(You may have to guess at this one. It's probably between 3
and 12. Generally, the better your customer service, the
higher this number will be.)
What percentage of these people actually become customers?
(Usually between 20% and 70%.)
Now, do the exercise to the left. Find out for yourself
just how much money each of your customers is worth to you.
This is important!
You see, much of what you'll learn throughout this report
will affect the lifetime value of each of your customers.
For example, when we teach you how to get your customers to
buy from you more often, the increase will be compounded by
the lifetime value concept.
And when we show you how to increase your average sale, it
too will be compounded.
Plus, when we give you some specific ways to get your
customers to refer many, many more people to you, your
lifetime value of a customer will grow even more!
Of course, how well you service your customers has a
gigantic effect on all of this, too. But remember, it all
boils down to cash in your pocket. So, from now on, when a
customer starts getting on your nerves (hey, it happens to
all of us), simply think about how much your average
customer is worth to you -- even the pains in the neck --
and smile.
Now, let's take a brief look at the steps we'll use to
double your business in six months (or less). After this
brief overview, we'll examine each step in detail as well as
give you some specific techniques you can use to make it all
happen.
---------------------------------------------------------
Here's what each customer is
worth to you in cold hard cash!
A. Average sale = _____
B, Number of sales per year per customer = _____
C. Number of years customer buys from you = _____
D. Number of referrals from customer = _____
E. % of referrals that become customers = _____
F. Gross Sales per year per customer (A x B) = _____
G. Gross Sales over life of customer (F x C) = _____
H. Referrals who become customers (D x E) = _____
I. Gross Sales from referrals (G x H) = _____
Watchout for more rich business articles.....
Regards,
Hope Uchemadu.
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