Hopefully it doesn’t involve you begging for customers, pleading for new clients, tossing out breadcrumbs in the hopes of customers finding you and immediately wanting to buy.
What’s your plan to actually attract great clients – and get them to come to the table ready to buy?
Sure, you place an ad on the radio, television, newspaper, or even a flyer in the hopes of that the right buyer sees and hears it.
If this sounds like you, then you fall into the same category as 95% of business owners. What you’ll learn here will help you get much better customers.
Let’s reframe the process of earning new customers by buying them!
Treat it Like an Investment
“I can’t just go out and buy customers; they have to come to me.”
Interesting statement. When we coach business owners, we treat the customer acquisition process like an investment. You buy a stock to earn a return. You check the stock’s bar chart to see your ROI. Why don’t you do the same for your marketing?
Set up a system where you know the approximate amount of money it takes to acquire a new customer.
For example, you invest $1000 in a marketing campaign. As a result, you received 100 phone calls. Let’s say one out of every five of these ‘Leads’ comes in and makes a purchase from you. According to the data, each Lead cost you $10. A sale costs you $50 ($5X$10).
Simple calculation, but you’ve now determined your Customer Acquisition Cost.
Now things get exciting.
Imagine knowing that your specific marketing effort would cost you $50 for each new customer it brought in, and that each new customer would eventually spend $500 with you, with $100 of it being profit. How many times would you spend $50 to acquire more customers?
Let’s see… spend $50 and get $100, spend $50 and get another $100, and so on… You can understand why you should repeat that as many times as possible.
An effective “test and measure” process will help you determine where to scale and where to stop. See how knowing Cost Per Lead and Cost Per Acquisition really come in handy?
Now, when you budget, you don’t just throw out a number for marketing spend. You know that $1,000 will get you 20 customers from a particular lead source.
Your Business is a Marketing Enterprise
Don’t treat marketing as some production. Why? Because the amount you pay to buy a customer is your biggest expense and your best investment.
It gets even more exciting when you find new ways to acquire consumers for less than you made on your first transaction. What if your first sale happened just a few days after you started marketing? What if you put in place low-cost techniques to keep those clients coming back and buying more from you each time they visit?
The next step? Apply this to all of your different products. Perhaps your higher-end product requires a higher cost per acquisition, but gives you a much better R.O.I. Perhaps you need to spend a certain amount to turn a one-time customer into a repeat buyer and a raving fan.
That’s when a company truly starts to take off, creating a steady stream of revenue for the owner.
Many huge corporations – your competitors – know these numbers and track them. They grow on autopilot because they treat marketing like a revenue machine.
Ready to build this framework in your business? Work with a coach to leverage the Five Ways in your business and truly systematize your marketing and sales.