New & Upcoming News… We will be rolling out the Ultimate Profit Hacking podcast with Pete Mitchell in the coming weeks!
Quote of the week
There’s no shortage of remarkable ideas, what’s missing is the will to execute them. – Seth Godin
Do you a go after a customer to get business or do you get business to get a customer?
I know some are reading this and saying, “I just want some business.” This may be because the statement MUST be a trick question, it looks the same.
Let’s really break both of these statements down and see where they really lead.
Yes, every business needs business to be profitable and to grow. When you say you are “going after customers to get business” you’re looking at your business in the short term, just dollars and cents in the here and now. If you want to function as a transactional based company, I guess that would be OK if you have no plans or goals for future growth and you’re thinking of your business just as a way to make an income or just earn a little money.
However, if you want grow your business for the long term and have future goals for growth with a predictable profitable tractable future, let’s really take a look at the statement, “getting a customer to get business.”
It’s customers that give us business, or more specifically, it’s the customer that you build a relationship with. It’s your customer who, if treated correctly, will continue to do business with your company.
It’s your customer who will refer you to their friends and family.
Your customer has a lifetime value. You ultimately control how long will they stay a customer and how many referrals they will send your way and how will that grow your business. This only depends on how you think about your business.
Take the time to track your customers and their referrals. Know what your average transaction is and figure out the lifetime value of a customer.
Let’s look at it in just dollars and cents for a minute and hopefully you will see things differently as you look into the future.
Let’s say for argument sake that your initial service call or sale is $100.00 and that a customer purchases from you 2 times a year and that the average customer stays with you for only 5 years.
So that’s $100×2 = $200 x 5 years, that’s $1000.00. So in reality every time you get a new customer you’re not making $100.00 in sales but $1000.00. That should change your thinking a little.
I’ve had many of my customers for 25 years and recently I was looking at the lifetime value of one particular customer who had referred me through the years and had done business with me numerous times. Their lifetime value to me was $53,750.00. Every customer is valuable to me on many levels. And each customer should be valuable to you also.
So as you look at your business and its growth, look to the long term and think about why you are in business.
Remember, new and upcoming is the Ultimate Profit Hacking podcast with Pete Mitchell.
Thank you to our sponsors this week who make this program available to you.
3D Mail Results
This week’s episode is brought to you by 3D Mail Results
They have creative, unique and clutter busting 3D mail products and grabbers will explode your direct mail results. Look into their products section for free example sales letters and headlines to help you easily incorporate 3D Mail into your campaign and amplify your returns.
check them out today!
United Association of Mobile Contract Cleaners is a nationwide network of contract cleaning contractors that embraces the power washing, window cleaning, carpet cleaning, and mobile cleaning industry.
More than just a contract cleaning association providing contractors with the tools necessary for growth, the UAMCC can assist homeowners and property managers connect with insured, qualified contract cleaning companies. No more guesswork and no more worrying if your contractor runs a legitimate business. Go to UAMCC.org to learn how you can be the best in your industry. Check out the UAMCC here!