Shows Objectives – Segment 1
Today, we are going to be talking about how to increase revenue by focusing on your Best Customers.
Segment 1
Remember to increase revenue in your business, you need to
1) Acquire new customers
2) Increase the average transaction size
3) Increase the frequency customers purchase.
In today’s show, we are going to focus on the second and third strategies.
Next week, we are going to do an entire show on acquiring new customers.
Over the last few weeks, we have talked about why it is more profitable to retain current customers than attract new customers.
Why it is far more profitable to sell more products and services to existing customers than
acquiring new customers?
If you remember, we talked about:
Understanding who your best customers is incredibly valuable for several reasons.
1) It costs 8-10 times more to acquire a new customer versus retaining a current customer.
2) Spend More
3) At Higher Price Points
4) Cost Less to Serve
5) Tell others about you. Think word of mouth and referrals
6) Once You understand who your best customers are its easier to attract more people like them
Today, we are going to talk about how to increase revenue by focusing on your best customers.
Have you ever thought about a roofing company? Roofing companies face an interesting dilemma. On-one-hand getting a new a roof is an expensive purchase. On the other hand, once you purchase a new roof, shingles companies are now offering 50 year and lifetime warranties. Plus, the warranty is transferable when you sell the home.
This creates an interesting dilemma for roofing companies. How do they stay in business when customers only need the product once every 50 years?
How do we sell more products to current roofing customers, when customers don’t really need our main product?
What can we do so we are not always chasing new customers?
How do we offset the price of customer acquisition?
That’s what we are going to be talking about today.
How to create opportunities to increase revenue with current customers.
Key Issues – Segment 2
We mentioned last week that there are 3 ways to grow a business.
1) Acquire new customers,- this is the most expensive way to generate revenue. This is what most businesses focus on the most.
2) Increasing the average transaction size. – Last week talked about how the dominos app does this.
3) Increasing the number of times a customer purchases.
- How to create additional products and services for your best customers?
- How to get people to purchase more often? maybe that is creating new products.
- How to increase the frequency of customer purchases –
- Become a Publisher- publish your knowledge, every business can create a free
and premium physical newsletter, write book, build a list of prospects and
customers.
We talked about how to identify your top 1%, 2%, 5%, 10% 20% of your best
customers.
What You Need to Know – Segment 3
Roofing Example – partnering with others- start an email newsletter to your existing customers,
start growing your prospect list, your customer list, hosting a local trade show, lead generation
service, start a local magazine
creates new products, collaborate with other businesses, direct and indirect competitors,
Partnering with Other Companies – Direct and Indirect Competitors –
Creating Additional Revenue Opportunities
Creating a Variety of Products and Services with Different Price Points
Link Your Products so there is a natural ascension.
Current Customers are worth more to our business than prospects
Rewards Programs
What You Need to Do – Segment 4
Identify your best customers are-
Create products that only cater to your best customers.
Continuity/Subscription Pricing Models- Examples software company examples, car
wash, membership club-
Reason Why Marketing – anniversaries, birthdays, holidays, and event calendar
Shows
Previous: Episode C3.006 Opportunities to PLUS 1 the Relationship
Next: Episode C3.008 Identify New Users for Existing Offer
