By James Kupe
If you run a business I have a very important question for you. How much does it cost you to generate a new customer? Do you know how much you spend on advertising, marketing, management and employee time in order to get a new customer? For most businesses, it’s a LOT!
Now that you know that number, I’d like to share one of the easiest but most underused ways you can think of for attracting new customers you could ever think of, but it won’t work until you understand something very important. If you have a business where customers tend to come back to buy from you over and over again, you entire focus should be on getting new customers to make their first purchase from you as quickly as possible.
The reason is because the lifetime value of each customer you bring into your business can be very high, and that’s where you should be looking to grow your sales – on the future sales you make to your customers, not on the front end. And now you know how much profit each new customer generates over their life time, you know how much time, effort and expense you can spend in order to attract each customer.
Let’s go deeper…
For most of the businesses I consult with, a large percentage of the profits are made from customers who are repurchasing over and over again. If you don’t do anything to drive them away, some customers can continue buying from you regularly for months, years and in some cases even decades. When you take the time to add up all of those additional sales, the amount of increased profit can be 3, 6 or 9 times more than anything you make on the first 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 could my business make if I could attract an extra 10 or 100, or 1000 new customers this month (and next month, and the month after that, etc). And 2 – What if I stopped thinking about the small profit I make on the front end, and focused on the massive, long term profits I could make from all the ongoing sales I make to my new customers in the years ahead, even if I don’t make any money on the first sale?
After you answer these 2 questions, you’ll probably have a big smile on your face once you realize the implications. Then all you have to do is decide on what method you can use to generate as many new customers as you possibly can.
If you just break-even or make a small loss on those sales, it doesn’t matter. All you want to do is get lots of new customers started in a buying relationship with you. As you make these easy front end sales, the backend profits in your business are going to soar as people start buying more products and services from you at full price over the weeks and months ahead. I hope this cool idea really helps you to grow your business.
Find out more about growing your business regardless of what the economy is doing at accelerate program review. And this article shows how to build a strong, powerful brand for your business so people see you as the only logical choice in your local market.