The Evolution of a Successful Marketing Campaign
Despite what many may tell you… successful marketing does not happen overnight. It takes time, testing and a plan.
You may be extremely surprised to first learn that some marketing and advertising campaigns are considered a success if they break even. If you spend $500 on the ad placement and you get back $500 in profit – it may be a great success for your business.
WHAT? How can breaking even be considered a success?
Most business owners never put 3 seconds worth of thought into what the lifetime value of your clients may be. Lifetime value of a client is calculated by adding up the initial purchase (averaged out) of a first time buyer in your business, times the amount of times in a year they buy from you, times how many years they stay a loyal client.
For example:
Hairdresser
First time client = $25
Average times / year = 10
Average years as client = 3
Multiplied out makes each and every client worth $750 to the hairdresser (25×10×3)
If you are a hairdresser and look at each new client as being worth $750 to you – what are you willing to do to get more clients? Would you spend $50 to make $750? I would certainly hope so. If not, let me repeat – each and every new client is worth $750 to you. Bring in 10 new clients a week and you are adding $7500 in new business a week. While you earn the money over the next few years – it is money you NEVER would have had.
Do the math in your own business – the numbers don’t lie.
Now, here’s the real exciting part. The key to lifetime value is to increase each number by small (or large) amounts. For example:
Hairdresser – Doing it the old way
First time client = $25
Average times / year = 10
Average years as client = 3
Hairdresser – Doing it the new way
First time client = $35 (by adding up sells and products at till – and making sure everyone knows about them – most don’t sell hard at this – an extra $10 at minimum)
Average times / year = 10 = bump up to 12 times – once a month – through consistent reminders and bonuses
Average years as client = 3 = bump to 4 years = treat them better and they will not leave as quickly
Now look at the numbers = $1400 for every new client (35×10×4)!
By putting a little more effort into getting them back more often, buy more while there and staying a loyal client longer you have almost doubled what they are going to spend with you!
All by paying attention to them and making sure they get the best possible services and treatment possible.
Now, how much will you spend to get a $1400 client for the first time?
Do the math and your world will quickly expand as you see the big picture.
Get your pen and paper out – and start adding!
To your success,
Troy White
Click here for original story, How Much Will You Invest In Your Clients?
Source: Mars News