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How To Compel Your Prospects To Do Business With You And Your Existing Clients To Give You More Referrals Than You Can Handle!
Dear Business Owner,
Imagine having an enterprise so successful that it gives you both the time-freedom and money-freedom to do the things you really enjoy, such as spending quality time with your family and friends, playing or watching your favorite sports as often as you want, going on extended vacations whenever you feel like it, or doing whatever your heart desires.
Aren't these some of the benefits you wish to gain from your business?
They probably are. But if you're like many business owners, you may think you can never build a company to provide you with such a phenomenal lifestyle, right?
Are you currently working 10 to 14 hours a day, at least six days a week, and still are making little or no profits?
Worse, do you have to put more and more of your life savings (or borrowed money) into your company to keep it going?
If so, I understand. Hi, my name is Larry Lee. And, in the last six years, I've helped thousands of business owners produce more profits.
In today's fiercely competitive market, I realize it's very challenging for you just to stay in business, let alone build a successful one. Just check out these statistics...
Every year, in North America, about 1,000,000 people start their own businesses. But by the end of the year, at least 40% of them will be broke. And, within five years, more than 77% of them (or 770,000) will have failed and closed their doors, with some even being forced to declare both corporate and personal bankruptcy.
Sadly, it doesn't get any better. Because more than 22% of the enterprises that survive the first five years, won't make it in the next five. This means, only 18 out of 100 will reach the 10-year mark. To put it another way...
82% Of New Businesses Fail!
Wouldn't you agree these figures are extremely disturbing?
No doubt.
Please listen closely. The main reason most business owners and entrepreneurs, especially the new ones, have to struggle just to make ends meet is they simply haven't learned and mastered the most important business skill in the world.
This is the most crucial business ability that you could ever learn. And after you've mastered it, you'll be able to make the kind of income you want, while working the number of hours you desire.
The skill I'm referring to is...
Knowing How To Attract Customers, Provide Quality Products And
Exceptional Service... And Maintain Them For Life!
Believe it or not, this is the secret of becoming incredibly successful in your business (or any business, for that matter).
It doesn't matter whether you run a restaurant, an accounting firm, a travel agency, a dry cleaner, a beauty salon, a flower shop, a medical practice, a law firm, a real estate agency, a bookstore, an insurance agency, a mortgage brokerage firm, a garage, a retail store, a bank, a print shop, an Internet operation, and so on, after learning how to obtain and retain plenty of customers, clients, patients, members, or subscribers, you'll be able to make more money than your wildest dreams.
In this special report, you'll discover the secrets of getting and keeping trainloads of customers. (For simplicity purposes, "customers" also means clients, patients, members, or subscribers.)
The first step to building your ideal company is you must understand what the main purpose of your business is.
Please answer this question...
"What's the primary purpose of your business?"
If you're like most entrepreneurs, you probably replied, "To make a profit."
If so, you're correct to a certain extent. You do need to earn a profit to stay in business, at least for the long term, anyway.
Although generating a profit is one of the chief objectives of every business, including yours and mine, it isn't the main goal of your enterprise.
Please etch this crucial fact into your mind...
The Main Purpose Of Your Business (And Every Other Business
In The World) Is To Attain And Retain Customers!
If you know how to get and keep an avalanche of customers and make them happy, compellingthem to buy from you for a long time and give you lots of referrals, your business will produce more profits than your wildest dreams.
On the other hand, if you don't have enough customers purchasing from you or using your service regularly, then you won't be able to stay in business for very long, let alone make a profit.
Every successful enterprise, regardless of the products or services it sells, has an intense focus on the customers. They find out what their customers want and help them obtain it.
Customers Are The Lifeblood Of Your Business!
The success of your business will depend on how well you serve your customers.
Have you been treating your customers incredibly well?
If you like most business owners, you probably haven't been taking care of your customers at the level you could have.
If you did, you would have a massively successful enterprise right now. So you wouldn't even bother reading this special report at all.
Here's The Biggest Mistake
Most Business Owners Make...
After investing a large amount of money, time, and effort getting prospects to become their customers (clients, patients, subscribers, or members), many business owners don't take care of them well enough to gain their patronage for the long term.
In other words, they treat their customers with indifference, ending up losing them in a short period. So they constantly have to acquire more new customers to replace the ones they've lost. And this vicious cycle repeats itself.
Check out the following statistics...
- Three percent of customers stopped doing business with a company because they (the customers) moved.
- Nine percent because they found a better price or product elsewhere.
- Fourteen percent because they were dissatisfied with the product they bought.
- Five percent because they were influenced by friends and relatives to buy from somebody else.
- Sixty-eight percent (or 7 out of 10 customers) because they were treated with indifference!
If you haven't been keeping in touch with your clients at least six times a year and doing something special for them, then this is one of the main reasons you aren't as successful as you want to be.
Here's what you should do...
Starting Tomorrow, Treat Each One Of Your Clients
As If He Or She Is Doing Business With You For The Last Time!
When you view them this way, you'll go the extra mile to serve them outstandingly well.
Always keep this important fact in mind...
The kind of lifestyle you get to enjoy totally depends on how well you serve your customers. The better you take care of them, the more business they'll do with you, and so the more successful you'll become.
The great news for you is, it doesn't take a lot of money, time, or effort to make your customers feel phenomenal. It's the little things that make a huge difference. You simply do something that most or all of your competitors don't do, won't do, or don't know how to do.
To Make Your Customers Remember You And Motivate
Them To Do Business With You, You Must Do Something
That Will Astonish Them Several Times A Year!
Six to ten times a year, you must do something for your customers that'll literally astonish them – something that'll make them say, "Wow!" So, whenever they need or want the type of product or service you sell, they'll think of you before anybody else. In addition, they'll brag you to everyone they know.
In today's ferociously competitive economy, you may not be able to offer a lower price or a better quality product than your competitors. So the only advantage you may have over them is your outstanding level of service.
The title of this report is, "How To Compel Your Prospects To Do Business With You And Your Existing Clients To Give You More Referrals Than You Can Handle!"
Later in this report, you'll discover how to do that. Right now, let's examine...
The Four Primary Ways To Grow Your Business:
- Get more prospects to buy from you and become your customers.
- Motivate your present customers to keep on ordering from you instead of your competitors (customer retention).
- Compel them to purchase from you more often.
- Persuade them to spend more money each time they buy.
If you had a system to perform these four methods effectively, wouldn't you agree you could easily double or triple your income within a year?
How many of them are you doing efficiently right now?
If you're like most business owners, you also have a hard time performing even just the first method effectively, let alone all four, right?
If so, that's because no one has taught you...
Marketing Is The Engine That Drives Your Business!
The success of your business depends on your marketing system. If you have an excellent one, you'll be able to make a fortune. Otherwise, you'll have to settle for an average income for the rest of your business career.
If you were to study the most profitable companies in your town or city, regardless of what products or services they sell, you'll find they all have an effective marketing system to get their goods into the hands of their prospects and customers... quickly, easily, and inexpensively.
In the same way, if you were to examine the businesses that are doing poorly, you'll realize they don't have an efficient marketing system in place, or even at all.
What about you?
Do you have a remarkable marketing system for your business?
Because you're reading this report, you probably don't, right?
If so, I understand your situation. After all, no one probably has taught you the essential role marketing plays in the success of your business. In addition, nobody has revealed to you the following critical fact...
You're In The Marketing Business!
That's right, it doesn't matter what product or service you sell, you're in the marketing business.
You're not an accountant. You market accounting services.
You're not a dry cleaner. You market dry cleaning services.
You're not a restaurant owner. You market food products and services.
You're not a lawyer. You market legal services.
You're not a mechanic. You market automobile repair services.
You're not a florist. You market flowers.
You're not a doctor. You market medical services.
You're not an insurance agent. You market insurance products.
You're not a financial advisor. You market financial products or services.
You're not a realtor. You market real estate.
You're not a mortgage broker. You market loans.
And so on.
Here are two examples to illustrate the important point I'm trying to get across to you.
You no doubt have heard of a company called Microsoft, haven't you?
Maybe you were, or even currently, are one of its shareholders.
Microsoft is the world's largest software company. Their revenue for fiscal year 2005 was $39.8 billion and their income was $12.2 billion. At least 70% of personal computers in the world use their products.
On the surface one would think Microsoft sells software, but if you study it carefully, you'll realize it is a giant marketing machine. Because it's so good at marketing, it virtually has no competition, even though its products are NOT the best in the world.
As you may recall, in 1998 Microsoft invested more than $250 million to market Windows 98 and, in 2001, it invested about $1 billion to market Windows XP. Their marketing campaigns were so effective that almost everybody knew about their products months before they were available. So on the day their products were for sale, they sold millions of copies of each program.
That's marketing at its best!
Another marketing powerhouse is McDonalds Restaurants.
Have you seen some of their newest marketing campaigns that were designed to motivate you to visit them and to buy their products, whether that's a new hamburger or an action figure from the latest movie?
After watching a McDonald's ad, didn't you usually feel like rushing to the nearest location and buy whatever the ad was promoting?
Their powerful marketing campaigns make them billions of dollars each year.
In short, since the purpose of your enterprise is to get and keep clients and marketing is what you use to achieve this goal, we can conclude that you (and every business owner in the world) are indeed in the marketing business.
Although this may be hard for you to believe, realizing this fact alone is your first major step toward creating your ideal business.
Here's fabulous news for you...
When You Have An Effective Marketing System...
You'll Be Able To Get Prospects To Call You...
Instead Of You Having To Chase After Them!
An effective marketing system lets you obtain as many customers as you want. So, if you don't have an effective marketing system, you won't have a thriving enterprise.
Now that you know marketing is the engine that drives your business, you must also realize...
Marketing Is The Only Function In Your Business That Brings
In Customers, Produces Sales, And Generates Profits!
Although you may be spending a substantial amount of money on rent, supplies, office equipment, and other purchases that are necessary in running your business, they don't create customers or produce profits for you.
In other words, marketing is an investment, not an expense. In fact, after you've learned how to market extremely well, you'll discover that...
Marketing Is The Most Profitable Investment You Can Make!
Here's why: When you invest your money in stocks or bonds or mutual funds, you may earn 5, 10, 15, or, if you're really lucky, 20 to 25%.
On the other hand, when you invest money in marketing – the right kind of marketing – you could make 10, 20, even 50 or more times return on investment (or ROI).
For example, an ad you place for $100 could generate $1,000 or even $5,000 in profits. This works out to be 1,000% (10 times ROI) and 5,000% (50 times ROI), respectively.
Since advertising is such a big part of marketing, let's examine it in more detail.
Please answer this question...
What Is The Purpose of Advertising?
Think about it carefully because the answer isn't as obvious as you may believe.
Whenever I ask some business owners this question, most of them would reply, "To get my company's name in front of my prospects."
Was this also your answer?
If so, you're right to a small extent. The complete answer is...
The Purpose Of Advertising Is To Make Your Prospects
Aware Of Your Products Or Services... And Get Them To Act!
This act may be calling you for an appointment, asking for a brochure or pamphlet, coming by your establishment to obtain more information, or, in some cases, buying your products.
The outcome of these actions should eventually lead to a sale.
To put it another way, advertising usually brings the prospects into the door. And, it's another part of marketing – selling – that compels them to purchase from you.
There Are Two Kinds Of Advertising:
The first is called image or institutional.
Although most ads or sales messages you see in newspapers and magazines, and so on, are image advertising, it's ineffective.
This is because the purpose of image or institutional advertising is to keep the name of the company in front of their prospects, telling them how great, how big, and how wonderful that organization or person is.
What's wrong with this?
Well, believe it or not, your prospects don't care how great or wonderful you are. They're only concerned with what unique benefits or advantages you can offer them that your competitors can't or don't.
In other words, they mainly want to know how your product or service is going to improve their life and how they're going to profit from it.
To achieve this objective...
Your Advertising Must Answer Your Prospect's Most
Important Question, "What's In It For Me?"
What this means is, telling a prospect how many years you've been in business or how successful you are, is simply a waste of time and money.
Your prospects and customers, just like you and me, are self-centered.
This isn't good or bad. There's nothing wrong with it. It's just human nature.
So, before they decide to buy from you, they want to know all the benefits they'll gain from your product or service and also from doing business with you.
Since your prospects have so many companies to choose from, before considering doing business with you, another important question they ask you is...
"Why Should I Choose Your Business Over
Any Other Business Available To Me?"
Most business owners try to answer this question by saying the old platitude: price, service, quality, and integrity.
If you also would reply to your prospect's question the same way, I have bad news for you.
It doesn't work.
You see, your prospects are sick of hearing this platitude. Today, this statement isn't even worth the paper it's written on. Every business claims the same thing.
You're probably also tired of hearing it, aren't you?
Listen, instead of just saying "price, service, quality, integrity," you must clearly communicate to your prospects and customers the benefits they'll gain from purchasing your product or service... and also from doing business with you.
Unfortunately, image or institutional advertising fails to achieve this pertinent objective.
Can you guess who uses image advertising the most?
You're right, if you said, "The big corporations."
Yes, giant companies, such as McDonald's, Coca Cola, Nike, IBM, AOL, GM, AT&T, GE, State Farm, Prudential Insurance, ING, and others, mainly use this type of advertising.
You may be saying, "If image or institutional advertising produces poor results, how come these conglomerates still use it?"
There are three reasons:
First, they have an almost unlimited advertising budget.
Second, since there's no accurate way to track the results of image advertising, they incorrectly think it's working because they're earning hundreds of millions of dollars a year, in spite of bad advertising.
Third, an image ad usually pleases their shareholders. Even though the shareholders really do want to see the company make more money, because they're not marketing experts, they don't know the ad is ineffective. They're just happy to see it being run over and over, because it makes them feel good to point to the fancy ad and tell someone they own a part of that company.
It's a shame that these huge organization don't realize how poor their image advertising campaigns are. If they did, they would have saved millions of dollars.
Because you and I have a limited advertising budget, we must make every dollar produce the highest
return. To do this, we use the other type of advertising – the one that works. It's called direct response advertising.
Unlike image or institutional advertising, which is simply a waste of money if you use it...
Direct Response Advertising Can Make You A Fortune!
A direct response ad (or sales message) achieves three main objectives...
1. It answers your prospect's most important question, "What's in it for me?"
2. It asks the prospect to respond or take action in some way!
3. It's trackable, measurable, and accountable!
As you can see, a direct response ad (or sales message) appeals to the self-interest of the prospects, telling them all the benefits they'll gain from using your product or from doing business with you, or both.
In other words, a direct response sales message (whether an ad, a flyer, a sales letter, a postcard, and so on) allows you to identify, qualify, and target your prospects – the ones that are interested in what you're offering.
This way, you'll be able to weed out the non-interested parties up front, maximizing every marketing dollar by focusing your efforts on selling only to the ones who are interested in your offer and can afford it.
Interestingly, because a lot of business owners assume their market is everybody, they typically make their ads or sales message appeal to everyone.
Perhaps you've done or are doing the same thing yourself.
If so, let me tell you why your ad hasn't been working as well as it could...
When You Try To Sell To Everybody...
You'll End Up Selling To Nobody!
Although your product or service may be suitable for everybody, there are some people who need or want it more than others. Your aim is to find out who your most ideal prospects are, and then target them with your irresistible offer.
Always keep this crucial fact in mind. Your prospects and customers want to buy from a business that can relate to them. Someone specializes in their areas of interest. So, if they see you try to be all things to all people, they won't do business with you.
For example: If you drive a BMW, would you take your car in for servicing at a garage that services not only BMW's, but also in Honda's, Toyota's, GM's, Ford's, and others?
In other words, a shop that services all makes and models of vehicles?
No, you wouldn't, right?
Of course not!
Instead, you'd take it to a BMW dealer or a garage that specializes ONLY in BMW's, wouldn't you?
Well, running an image or institutional ad is like operating a mechanic shop that services all makes and models of vehicles. You'll have to place a lot of ads to find enough people who are interested in buying your product or using your service. This is because most of the folks who see your ad aren't interested in, or can't afford, what you're selling.
Another characteristic of a direct response ad is that it stimulates a direct and immediate response – either a qualified inquiry, phone call or visit to your business – or better yet – to encourage an instant sale.
Some business owners told me they have placed ads that cost as much as several thousand dollars but have produced little or no sales. The interesting thing was that they claimed their ads were working because their advertising probably had made more people aware of their company's name.
That's silly. Please etch this important fact in mind...
The Only Purpose Of Running An Ad Is To Compel The Reader
To Take Some Sort Of Action Toward Making A Purchase!
If you run an ad for any other purpose, especially to inform your prospects how great and wonderful you are, then it's just a waste of your hard-earned money.
Remember, your prospects don't care one iota about you, they're only concerned about themselves.
We'll now discuss another powerful principle that will give you an incredible advantage over the competition and skyrocket you to the top of your industry. It's called...
Unique Selling Proposition!
Your Unique Selling Proposition or USP is that single, compelling ideal that makes people want to do business with you, instead of your competitors.
It tells your prospects and customers the benefits they'll gain by doing business with you, which they won't be able to get from anybody else.
Your USP answers your prospect's most important question, "What's in it for me?"
Now, please don't confuse USP with UPS (United Parcel Service, the courier company).
USP stands for Unique Selling Proposition, and it's the thing that sets you and your business apart from every other "me too" competitor. When done properly...
Your USP Will Allow You To Out-Market Everyone Else In
Your Industry, To Create An Unforgettable Identity
In The Market, And To Make It Irresistible For
Prospects Not To Do Business With You!
Almost every successful business, whether small or large, has a USP. In fact, that's how small businesses grow into giant corporations.
For example, both Domino's Pizza and Federal Express became billion-dollar corporations in a very short time because of their powerful USPs.
Federal Express' USP is, "When it absolutely and positively has to be there overnight."
This statement tells the potential customers if they want to be 100% certain their mail or package will get delivered the next day, then they must use Federal Express.
Domino's USP was, "Hot, fresh pizza delivered within 30 minutes – guaranteed – or it's free!"
Doesn't this USP motivate you to buy from them whenever you have a craving for pizza?
You bet! That's why millions of people order from them every day.
Your USP, when formulated compellingly and powerfully, can shoot your business to the top of the industry in a very short time, just like what Federal Express's and Domino's USPs did for their respective companies.
There are many types of USP you can create for your business.
Your USP can center around your product, service, price, selection, quality, or a combination of these benefits.
For example, you can position yourself as having the best selection or the broadest range of products or services in your town or city – "broad choices."
Or, you may offer a narrow selection but emphasize "low prices."
Or, you might distinguish yourself as having the finest products at reasonable prices, rather than having the largest selections or offering the lowest prices. Your USP focuses on "quality."
Or, your USP can emphasize your ability and willingness to go the extra mile to serve your customers better than anyone else.
While the possibilities of USPs are unlimited, the important thing to remember when developing a compelling one is...
Your USP Should Address An Obvious Lack In Your
Industry Which You Can Fill Better Than Anybody Else!
In short, if you want to have tons of customers calling and begging to do business with you, you must create and implement a USP in your business, immediately, before your competitors do. This way, you'll start developing customer loyalty and gaining market dominance.
Even though a USP is one of the most critical ingredients for building a successful company, only a few businesses have one. If you flip through your Yellow Pages, out of thousands of companies, you can count the ones that have a great USP on your fingers.
So, imagine the extraordinary edge you'll have over the competition after you've developed a powerful USP and communicating it to your prospects and customers in all your stationery and marketing materials – business cards, catalogs, brochures, flyers, ads, letterhead, and others.
If you have a phenomenal USP, it can skyrocket your enterprise to a new level of profits, leaving your competitors in the dust.
We'll now discuss one of the deadliest mistakes many business owners make in trying to grow their enterprise.
As you've learned, the four primary methods for growing your business are...
- Get more prospects to buy from you and become your customers.
- Motivate your present customers to keep on ordering from you instead of your competitors (customer retention).
- Compel them to purchase from you more often.
- Persuade them to spend more money each time they buy.
Of these four ways, guess which one most business owners invest the majority of their time, energy, effort, and money on?
You're right, if you said, "The first one." Yes, the majority of entrepreneurs spend their valuable resources trying to get more prospects to buy from them and become their new customers.
The reason this is a huge mistake is that...
It Costs Six Times More To Turn A Prospect Into A New
Customer Than To Resell To An Existing One!
Since prospects haven't done business with you, you must invest a lot of resources on marketing
(placing ads, sending out sales letter, talking to them on the phone, taking them out to lunch, and so on) to convince them to do buy from you, instead of your competitors.
Existing customers, on the other hand, are familiar with you because they already have at least one purchasing experience with you. And, if you've treated them well and made them feel special or appreciated, they'll buy from you again, if you'll just ask them.
On average, an enterprise typically loses about 20% of its customer base each year. So you must obtain 20% more customers annually just to stay even.
No wonder a lot of business owners constantly have to acquire new customers to replace the ones they've lost. And, since the customer-acquisition process is very costly, they can't replace all the customers that have left them.
That's why it's vital for you to focus your money, time, and effort on pleasing your existing customers, compelling them to keep on buying from you for years to come and to shower you with plenty of referrals.
At the beginning of this report, I shared with you that most business owners treat their current customers with indifference, forcing 7 out of 10 customers to stop buying from them eventually.
One of the main reasons these business owners don't take care of their customers astonishingly well, is that they don't know the lifetime profit value of their average customer. As a result, they usually invest most of their valuable resources trying to turn more prospects into customers, instead of reselling to their current ones.
What about you?
Do you know how much money you could make from each one of your customers over the next 10 to 20 years?
If you're like most business owners, you probably replied, "No," right?
If so, please pay close attention...
If You Don't Understand The Lifetime Profit Value Of
Your Average Customer, You're Losing Out On Tens To
Hundreds Of Thousands Of Dollars Or More Each Year!
You're about to discover...
How A $10 Sale Could Be Worth $1,000 Or More!
Believe it or not, a $10 sale could turn into $1,000, $5,000, $10,000 or more over the course of the life of your average customer, which could be 5 to 20 years, depending on the type of product or service you sell.
For example, if you operate a restaurant, a customer who orders a $10 meal could amount to thousands of dollars within several years.
If your food and service are fantastic, this customer will patronize you over and over again and will brag about you to everyone he or she knows. And this process could put thousands of dollars into your bank account, without incurring any additional marketing costs.
Your Customer Database Is
Worth Its Weight In Gold!
After calculating the lifetime profit value of your average customer and implementing an effective system to resell to them regularly, you'll be able to make the kind of income you desire.
Now, in case it's hard for you to believe one of your customers could be worth $1,000, $5,000, $10,000, $50,000 or more, over the lifetime of his or her buying cycle, let me prove it to you.
To do this, we'll use...
The Formula For Calculating
The Lifetime Profit Value Of Your Average Customer:
A. Average value per sale
|
$
|
B. Number of sales per year per customer
|
|
C. Number of years customer buys from you
|
|
D. Number of referrals from customer
|
|
E. Percentage of referrals that become a customer
|
%
|
F. Gross Income per year per customer (A x B)
|
$
|
G. Gross Income over life of customer (F x C)
|
$
|
H. Referrals who become customers (D x E)
|
|
I. Gross Income from referrals (G x H)
|
$
|
|
|
|
J. Total Value of a Satisfied Customer (G + I)
|
$
|
Let me explain this table to you.
A. Average sale: Add up the total dollar sales for a year and divide that by the total number of sales transacted.
B. Number of sales per year per customer: Take the total number of sales transactions for a year and divide it by the total number of customers.
C. Number of years customer buys from you: Since 20% of the population moves every year, this number probably is less than five years.
D. Number of referrals from customer: How many people does each satisfied customer tell others about you? It's probably between 3 and 12.
E. Percentage of referrals that become customers: The more compelling your USP is, the higher the percentage. It usually is between 20% and 70%.
To help you figure out the lifetime profit value of your average customer, I'm going to use a restaurant as an example. Please follow along with the exercise and fill in the blanks under the column marked "Your Business."
Remember to use an estimated average. And, keep in mind, some customers only buy from you (or use your service) once while others may purchase 5, 10, 20 or more times.
|
|
Restaurant
|
Your Business
|
1. How much is the average sale?
|
$10
|
$
|
2. How many times per year does the average customer buy?
|
24 (2/month)
|
|
3. How many years will the average customer continue to purchase from you (assuming you keep him or her happy)?
|
5
|
|
4. How many referrals will the average customer generate for you?
|
6
|
|
5. What percentage of those referrals will become your customers?
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25%
|
%
|
Next, enter the numbers into the formula and see what you get...
|
|
Restaurant
|
Your Business
|
A. Average value per sale
|
$10
|
$
|
B. Number of sales per year per customer
|
24 (2/month)
|
|
C. Number of years customer buys from you
|
5
|
|
D. Number of referrals from customer
|
6
|
|
E. Percentage of referrals that become a customer
|
25%
|
%
|
F. Gross Income per year per customer (A x B)
|
$240
|
$
|
G. Gross Income over life of customer (F x C)
|
$1,200
|
|
H. Referrals who become customers (D x E)
|
1.5
|
|
I. Gross Income from referrals (G x H)
|
$1,800
|
$
|
|
|
|
|
J. Total Value of a Satisfied Customer (G + I)
|
$3,000
|
$
|
What's the lifetime profit value of your typical customer (see line J)?
Is it more or less than the $3,000 for the sample restaurant?
Whatever your lifetime profit value is, it's probably a lot more than what you originally thought each one of you customers was worth, isn't it?
In the case of the restaurant, are you surprised a $10 sale could amount to $3,000 (or more) in just five years?
After some business owners found out the lifetime profit value of their average customer, they were shocked.
They finally realized the vast amount of money they had flushed down the toilet by not taking excellent care of their customers in the past. So, today, they're constantly going the extra mile to serve their customers.
The same thing is true with you. You should invest the majority of your valuable resources – time, effort, and money – on your existing customers, making them feel super special or appreciated, instead of trying to turn more prospects into new customers.
The only exception is that if you're new in business and have few or even no customers. If so, your main goal is to acquire truckloads of new customers quickly, easily, and cost-effectively. And, after you have 50 or more customers (clients, patients, members, or subscribers), then you should focus most of your resources on selling multiple products to them and obtaining referrals from them.
The great news for you is, it doesn't take a lot of money, time, or effort to make your clients feel good. It's the little things that make a huge difference. You simply do something that most or all of your competitors don't do, won't do, or don't know how to do.
To make your clients feel wonderful, you can send them the following...
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