QUESTION: Who is your best customer?
ANSWER: The one you already have!
You’ve heard the stats… it takes 3 – 12 “touches” to acquire a new customer ~ and even then, there’s no guarantee.
The reality is that most people who inquire about your business will end up buying somewhere else. That’s just the reality.
No one has 100% market share or 100% market penetration.
So when you eventually win a new customer, it make sense to communicate with them, find out what else they need and then figure out a way to give it to them… right?
LIFETIME CUSTOMER VALUE
Lifetime customer value (or LCV for short) is an important metric in every business. It’s the average amount a new customer will spend with you over the course of their time doing business with you.
You want your LCV to be as high as possible and one way to do that is to communicate with your customers.
Launching a new product? Announce it!
Offering a holiday special? Announce it!
Looking for a new product or service to develop? Ask for input!
Staying in touch with your customers, finding out what they want and then making special “customer appreciation” offers is a powerful way to grow your business without always going after new customers.
One of my clients is essentially a single SKU company. They sell multiple variations of one type of fitness product, but once someone has purchased, the likelihood of them purchasing again is fairly low – at least until their first purchase wears out.
Since they make a high quality product, it can sometimes be 5 years before someone needs to replace it, even with regular use.
But there was a variation that people had been clambering for and, recently, they developed and launched it.
Except they didn’t really tell anyone!
Sure, they put up an announcement on their website, but they didn’t specifically tell the people who had been asking for it!
THERE’S POWER IN PROMOTION
Last week, I convinced my client to record a special holiday video, announcing the product and offering a “customer appreciation” special offer that wasn’t available on the public website.
We sent the link to about 1000 past customers by email on Friday… this morning we have over $1500 in new sales because of one small effort.
Now, $1500 may not sound like a lot, but think about this ~ what if you could send one email per month and generate that kind of additional revenue? That’s an additional $17,000 in annual sales.
And we’re not done. We’ll follow up with everyone again this week, reminding them to order before Friday to get the product in time for Christmas and I expect we’ll generate another $1000 in sales.
The lesson? By taking a few simple actions, my client was able to generate an increase in sales for the week, reactivating past customers, some of whom had been “cold” for up to 2 years.
GOT AN IDEA, THOUGHTS OR OPINION?
LEAVE YOUR COMMENTS BELOW!
P.S. Marketing is about “acquiring” and “retaining” customers. For just $20 you can create your own strategic plan with Make My Marketing Work: How to Win Customers & Make More Money.