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The majority of the value in your customer is in the sales after their initial purchase. Most business owners and managers know this. I’m sure you do. However, not many people really appreciate the life time value of their customers. When you know the true life time value (and profitability) of your average customer then you know how much you can afford to spend on marketing or special offers in order to attract the first purchase. YOUR HIGHEST PROFIT WILL USUALLY COME FROM SUBSEQUENT SALES… Let me give you an example: Suppose you sold an electronic gadget that normally retails at £50. It costs you £20 to buy. When someone purchases that gadget you make a gross profit (GP) of £30. Having purchased that one item you keep the customer informed of similar products through your direct response marketing; sales letters; newsletters; web page etc. They buy another piece of equipment at £150, which costs you £80 to buy. That gives you a GP of £70. So far you’ve made £110. Now, let’s say he purchases an item for £230, which costs you £110 to buy in. That’s another £120 to add to your GP from that one customer. Suppose he only buys one more item from you at £320, which costs you £180 at source: your overall GP is now £370. Now you have this information you can make an educated decision on how you encourage the first purchase. In fact you could afford to offer your first electronic gadget at a ridiculously low price, i.e. cost or even below; knowing your marketing method - regular, informative contact - encourages more sales on which you can make your profit. So, if you offer your first gadget at £21 instead of £50 as a ‘special offer’ you probably have a higher response of people purchasing than you would if you tried to retain your profit margin on the first sale. Don’t forget, it’s the follow-up nurturing that creates your full life time value. The thing is, would you rather have 20 sales at £21 with the likelihood of further purchases creating a good gross profit for you? Or just 3 sales at £50 and no follow on sales? If you have never done this exercise before, I strongly recommend that you do so, before you start any marketing campaigns. The Vertical Project. - Why Increase Your Vertical Leap by 6-12 Inches, When You Can Double It? Royalty Free Coaching Products. - Keep 100% of the profits by selling your own royalty free coaching products! Article Index: | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 | 22 | 23 | 24 | 25 | 26 | 27 | 28 | 29 | 30 | 31 | 32 | 33 | 34 | 35 | 36 | 37 | 38 | 39 | 40 | 41 | 42 | 43 | 44 | 45 | 46 | 47 | 48 | 49 | 50 | 51 | 52 | 53 | 54 | 55 | 56 | 57 | 58 | 59 | 60 | 61 | 62 | 63 | 64 | 65 | 66 | 67 | 68 | 69 | 70 | 71 | 72 | 73 | 74 | 75 | 76 | 77 | 78 | 79 | 80 | 81 | 82 | 83 | 84 | 85 | 86 | 87 | 88 | 89 | 90 | 91 | 92 | 93 | 94 | 95 | 96 | 97 | 98 | 99 | 100 |
Advice Home Business Technology Online Advertising Motivational Internet Marketing SEO Help Online Games Science Articles Happiness More Articles:1. Five Cheap Tricks for Promoting Your Business By Nancy Jackson If you’re like me, you’re always looking for ways to promote your business — without spending a ton of money. Well, you’re in luck. This article lists five of my top 10 favorite ideas for promoting your business or organization for next to nothing (and in some cases, completely fr*e). While these ideas are a start, there are plenty of other ways to get the word out about your product or service and build relationships with potential clients. Us… 2. Did Jesus Get Killed for Practicing Interruption Marketing? By Joshua Minton I'm reading Seth Godin's Permission Marketing and he brings up the difference between Interruption Marketing and Permission Marketing.Interruption Marketing is when you interrupt people from what they are doing in order to ask them to pay attention to something else.Permission Marketing is when you build your product around a consumer base that is expressing a need that you design your product to fulfill.If you've read The Tipping Point then yo… 3. Ten Monster Ways To Anchor Down More Sales 1. Multiply your marketing and advertising efforts on the Internet. You can accomplish this by starting an affiliate program or using viral marketing. 2. Increase your ratio of visitors that purchase your product(s). You could change your headline, offer a stronger guarantee, add testimonials, etc. 3. Find out who are your strongest leads for buying your product by offering a free ezine. The visitors that are very interested will subscribe to i… 4. Constructing A Website That Earns Money Online I would like to share with you one simple stratergy in creating income with your own website. This is just one method out of simply millions that you could create for yourself. Remember the internet provides no limits. This is one example that does work for me, and may give you an insight into exactly a website model, that you may like to put into action for yourself. Affiliate marketing and/or sales of any kind on the internet, requires a real c… |