10 Steps To Small Business Owner Marketing – Part 2
by: CJ
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Today we are going to look at one of the BIGGEST impacts you can make in your business for maximizing your profits. If you really want to see your profits sky rocket, start applying these tips and you will see a change swiftly. The best part of this series is that it really can be done for almost nothing. Change the way you think and find a way to help your client. If you can find the solution to their problem in your line of work, you will begin climbing the profit ladder.
Here we go.
3. The Value of a Client
I can’t give you the full impact on paper on what the Value of Your Client means to your business. Most businesses don’t recognize the full value of their client and it is a crucial mistake. If you can recognize this value, you will have a tool that will leave your competition standing in the dust. I will try to explain the value of your client as best I can so you can get the idea of how you can raise your gross numbers and widen the profit margin almost immediately.
I will use some basic numbers to set this up. Let’s say you have 500 clients, and on average they stay with you 5 years. Then over the 5 years you do a net profit of 500,000. You will take your net profit of 500,000/500 to get your Value of Your Client. Your Value of Your Client is $1000.00 as a lifetime value. Whenever you pick up a new client, they are worth $1000 on average over the 5 years.
This is important to know for so you can make smart marketing moves that won’t effect choices that most businesses walk away from doing because of cost. Here is why.
For instance, if you want to run a advertisement that costs $2000, and you get 50 sales off of it averaging $25 for each sale, or total revenue of $1250. If you look at those numbers, most would look at it as loosing money or a failure of a marketing campaign, but on the contrary, take the investment of $40 per client ($2000/50 clients) and apply the Value of Your Client $1000, you just made $50,000. That’s a little investment for a big return.
I am telling you this principle is crucial to your business. It can literally turn your business into a client focused, maximized profit leader in your industry.
When using this principle you need to realize that clients are a sale for tomorrow, not just for today sales margin. Begin building relationships with your clients, getting their thoughts on your products and listening to what they need and you will keep a long term customer coming back to you. Clients are an ongoing source of cash flow .
All of these items, are crucial. If you can improve a little in each are you will see a major change in your bottom line. Some of the smallest changes can bring the biggest profit. Improve your customer service to be friendlier, improve your reaction time in support, improve your product continually, and improve your focus on the customer.
If you think upon this method of marketing you will notice it will get your mind thinking bigger and free up your thoughts to be more centered on the client and not your business. Keep plugging away and remember the Value of Your Client.
Until Next Time….
About the Author
CJ Gaul is well known for internet marketing, business coaching, web development, and is also known as Pastor, Worship Leader, and friend. You can also be a part of his free tele-conference calls seires, called Business Masterminding Tele-Call series by going to http://www.theadminprofessional.com/master.html.
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