In today's tough economy, there are plenty of businesses just hanging on hoping things are going to get better. The thing is, you don't have to be one of them if that's where you are right now. If you want too get your business growing again, start by answering these two questions. Do you have any idea of what it costs you to attract each new customer? Go ahead and work it out now. The dollar figure you come up with is probably going to be quite a lot!
Today we're going to look at one of the most underutilized ways of attracting new customers you could ever think of, but it won't work until you first realize a very important fact. If there is a high probability of customers coming back to your business over and over again to purchase from you, your most critical job should be getting new customers to make a first purchase from you as quickly as you possibly can.
The key to this idea revolves around the lifetime value each customer has to your business, and it's vitally important for you to understand what I'm going to talk about here. That's because until you know exactly how much combined profit each new customer brings in to your business during the time they will be buying from you, you don't know how much time, effort and expense you can afford to spend to attract that customer.
Here's what I mean.
If your business is like most of those I consult with, a large proportion of the money you will make comes from customers who keep repurchasing from you over and over again. In some cases, customers can continue buying from you regularly for months, years, or even for decades. Now when you add up all of these additional sales, the amount of increased profit you put into your pocket can be 2, 5 or 10 times more than the profit you make on the initial transaction.
The thing to remember is that none of that long term profit would be available to you if you didn't bring those customers into your business in the first place. So because it's so important to your long term success that you generate as many new customers as possible, I want you to ask yourself these 2 related questions.
1 - How much extra money would I stand to make if we brought in an extra 10 or 100, or 1000 new customers this month (and next month, and the next month, and then the next month as well). And question 2 - What if I stopped stressing about the small profit I'm making on the first sale, and started to go after the massive, long term profits I can make on the backend from all of those new customers?
When you've answered these 2 questions, you're probably going to have a giant smile on your face as you think about the implications. Now sit down with your team and decide on what methods you can use to start making as many sales to new customers as you can.
The idea is to break-even or even make a small loss on these front end sales, just to get the customer started in a buying relationship with you. As you make more front end sales, your backend profits are going to grow exponentially as your new customers buy more products and services from you over the weeks and months ahead. Pretty cool idea isn't it? I hope it helps.
Today we're going to look at one of the most underutilized ways of attracting new customers you could ever think of, but it won't work until you first realize a very important fact. If there is a high probability of customers coming back to your business over and over again to purchase from you, your most critical job should be getting new customers to make a first purchase from you as quickly as you possibly can.
The key to this idea revolves around the lifetime value each customer has to your business, and it's vitally important for you to understand what I'm going to talk about here. That's because until you know exactly how much combined profit each new customer brings in to your business during the time they will be buying from you, you don't know how much time, effort and expense you can afford to spend to attract that customer.
Here's what I mean.
If your business is like most of those I consult with, a large proportion of the money you will make comes from customers who keep repurchasing from you over and over again. In some cases, customers can continue buying from you regularly for months, years, or even for decades. Now when you add up all of these additional sales, the amount of increased profit you put into your pocket can be 2, 5 or 10 times more than the profit you make on the initial transaction.
The thing to remember is that none of that long term profit would be available to you if you didn't bring those customers into your business in the first place. So because it's so important to your long term success that you generate as many new customers as possible, I want you to ask yourself these 2 related questions.
1 - How much extra money would I stand to make if we brought in an extra 10 or 100, or 1000 new customers this month (and next month, and the next month, and then the next month as well). And question 2 - What if I stopped stressing about the small profit I'm making on the first sale, and started to go after the massive, long term profits I can make on the backend from all of those new customers?
When you've answered these 2 questions, you're probably going to have a giant smile on your face as you think about the implications. Now sit down with your team and decide on what methods you can use to start making as many sales to new customers as you can.
The idea is to break-even or even make a small loss on these front end sales, just to get the customer started in a buying relationship with you. As you make more front end sales, your backend profits are going to grow exponentially as your new customers buy more products and services from you over the weeks and months ahead. Pretty cool idea isn't it? I hope it helps.
About the Author:
Want to find out more about growing your business regardless of what the economy is doing at accelerate program review. and then read this post to learn how to generate more referrals than you will ever need.
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