Targeted Traffic Generation And Profit Building -Through Strategic Customer Lifetime Value & Loyalty
Learn how to generate targeted traffic for free by learning how to target your customers and identify the most profitable ones from the ones that aren’t.
Now, you may be thinking that this is a bit obvious, but in the next few minutes, I will reveal why it is important, how to do it, and discover other ways you can How to convert your customers into loyal and regular customers, with high lifetime value. . You may have heard somewhere that it costs less to retain an existing customer than to acquire a new one. This statement is true. And what is even more important to understand is that there are customers who are profitable customers and others who are not. And that is also true whether you have a truly offline business or your business is 100% online. An American bank did a study a few years ago, and they found that you can group your customers into five different categories. Instead of studying mass marketing, which can lead to the old 80/20 rule where 80% of your business comes from 20% of your customers (which applies to all industries)… but instead they studied profit.
Here are the results summarized in all numbers:
5% of households get 80% of their quota. 11% of households received 25% of their quota
28% of families – 16%
28% of families – 2%
Now wait… do you follow math? It’s more than 100%… what’s going on here? That’s 123% of gross profit!
I said five categories… right? The fifth model, the remaining 28% reached the -22% margin (negative). Almost one third of the customers have a negative impact on the bottom of this bank. Every time they do business with these customers, the bank loses money.
The second thing the bank learned was that it had to identify WHO’s best customers (let’s call them GOLD customers) and treat them better than the other five groups. AND, identify losing customers – with the goal of eliminating them or turning them into profitable customers. Imagine if they could get rid of all this kind of… they will add 22% to their bottom line. It’s not money… for the profit made by the bank.
Finding your GOLD customers may not be as difficult as it seems. Remember we are only looking for 5% of them. If you have a list of 1,000 customers, you only need 50! 5,000 customers? 250. Not a terrible job. And once you know who they are, there are steps you can take to increase your value to them…which in turn will create even more loyalty for you and other customers. Even if you have a list of 10,000 or 20,000 subscribers, you probably don’t have 10,000 or 20,000 customers. So work with your customer list to find out who your GOLD customers are. Here are some ways to reward them and treat them well.
Have a special members-only area of your site – just for them
Organize a special seminar, webinar or special report. Have a special party – alone or in a circle at the church
Call them on the phone and thank them for their work
Send them a gift card to thank them for their business
If your business is large, have a dedicated customer service phone line – just for them. Make sure he answers on the first ring. Lose the losers.
In addition to keeping your Gold customers loyal to your business, you need to do something about the losers. Although these customers cost you money and reduce your profits, they reduce the value and time you can give to your best customers.
The first step is to recognize them. Once you know who they are, you can reprice their services or get them out the door.
Who are the losers in your business? Do they want to hold more hands? Are they slowly paying their bills? Do they use seemingly irrelevant questions? You respond to their questions in a timely manner and only months pass before they respond to you. And then, at this time, you need to open the files, familiarize yourself with the project, and get the progress of the project.
In the service business, are they asking for frequent changes in the service you offer? Do you expect change to be made with your money instead of theirs? Do they negotiate your rates down to a small the 123 profit that guarantees future business or big business? Or maybe they contact you again AFTER the job is done, thinking they’ve stretched you over the barrel because you can’t sell the custom job to someone else.
Another consideration to consider is that your target customers may not be like everyone else they do business with. They can be GOLD customers for someone else. Or it could be a customer who eventually becomes a GOLD customer.