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Getting New Customers
For Your Business...
It's NO Secret! - Make Powerful Offers And
You'll Attract Them Instantly!
By Jim Fleck
I like to
keep a promise I made to a member. Which is…
To show you how to at least double
your profits in less than 30 days.
I’ll show you how to go about getting
new customers for any business. Actually, getting new customers is
easy - if you know how. Most people in business do it the
hard way. I’ll show you the easy way.
And it’s also the cheapest way
to get all the customers you want.
To do this I need to explain what’s
known as the "lifetime value" of a customer to you. Some of you may
know what this is, I know of at least one that doesn't. If you
under-stand the "Lifetime Value" of your customer - you can get new
customers almost as if by magic. It’s the "Marketing Edge" that can
help your profits skyrocket and get lots of new customers coming
through your door.
No matter how large or small your
business, no matter what product or service you sell, you must first
calculate the "Lifetime Value" of your customer. Once you know it,
you can decide exactly what you can afford to spend to bring
in a new customer— and the best way to go about it.
In a nutshell the Lifetime Value of a
customer is….
The average purchase value,
multiplied by the number of times they buy from you in a year,
multiplied by the number of years they remain your customer.
For example: You own a restaurant and
your regular customer spends $30 each time they visit you, of which
$20 is profit. Let’s say they come to eat 12 times per year and stay
with you for 2 years on average.
This means your regular customer is
worth $20 x 12 x 2 = $480 in profit to your business.
You can
use the same method to calculate the Lifetime Value of a customer
for a hairdresser, a supermarket, website, carpet cleaner,
plumber...in fact, it works the same for any business.
You can apply this formula even if
you’re selling a high value item such as refrigerator's, cars,
office furniture or other "one sale" type items. Even though it may
be years before another purchase of the same item by your customer,
you may sell them something else. Or you may have service contracts,
other add-ons and customer referrals. They all add up to extra sales
and profits over a period of time.
Even if you just approximate the
extra sales, you will start to get some idea of what every customer
is
really worth to your business.
And once you know this…you’ll know
what you can afford to
spend to get new customers.
Most business promotions consist of
ads in the papers and magazines, beautiful brochures and outdoor
signs. They do mail outs telling the world about their wonderful
products, service and themselves. And they usually offer a
"Grand Opening Special" discount. Something weak, like 10% or 15%
off, or $10 discount every time you spend $100.
However, unless you have some
marvelous contraption that everybody wants, such as the only water
stand on the edge of the Sahara Desert, this creates about as much
excitement as a dead jellyfish.
Oh, sure. It will increase your
business. However, it will expand it v-e-r-y s-l-o-w-l-y. In the
mean-time, the rent has to be paid, you have to live and the ads are
costing you a fortune. In a year or two or three you
may actually have a business. Or YOU ARE BROKE.
But you, faithful member, are much
smarter than that, aren’t you? You know there has to be a better
way, don’t you? Well, there is! And I’m going to tell you all about
it.
You are
about to learn how to create a situation resembling shark-feeding
frenzy in your place of business.
A friend
of mine tells me about a gentleman who built a business starting
from zero using this approach. He spent $1 million building 3 tennis
courts, swimming pools, game rooms, and barbeque facilities in the
middle of his town. The place was magnificent. There was one
trouble: He had no customers.
So here is what he did. For one month
he advertised in the local newspapers:
Free Tennis Lessons, Free Tennis Court Rental, Free Barbeques and
Swimming Pool Parties. And guess what happened? That’s right!!
The place was packed from 7 am till
10 pm every day that month. He gave away
lots of tennis lessons, sausages and court rentals. It cost him a
few thousand dollars. The interesting part is that at the end of the
month, he had a going business. The courts were booked solid and
have been ever since.
He understood what a new customer was
worth to him. He knew that once people got used to playing at his
courts instead of someone else’s they’d be back. He charged more per
hour than the others.
But the customers got extra value
with the swimming pool and barbeque
facilities and friendlier
service.
Because
he knew the Lifetime Value of his customer he gave something away
and ended up making a fortune.
He knew a regular weekly booking of 2
hours means $20 per week x 52 = $1,040 per year. Plus, coaching at
$25 per half hour each week, plus sales of tennis balls, clothes,
etc. This means he could well afford to give all those Free games,
coaching and food to attract new customers.
Another business that applied this
concept brilliantly is a restaurant called the Alley Deli my friend
Dan Kennedy talks about. The owner, Norman Gordon, sent a letter to
all the V.I.P.’s in the community, to the main partners in law firms
and the executive heads of all the companies located in buildings
just a few blocks away from his restaurant.
Altogether he mailed 120 letters.
They were addressed by name to all the people on his list and
included a menu.
His offer was simple:
A FREE
Lunch!!
The
result? Out of 120 people, 100 accepted the lunch. Half of them
ordered another lunch at the same time. Most of those people became
steady customers. Norman Gordon said:
"It would have taken me six months to
bring in the kind of business direct mail brought me in six days. I
couldn’t afford to wait six months…"
He tripled his business since using
only similar direct mail approaches to qualified prospects. The
letter was written by Murray Raphel, a famous marketing and
advertising expert. He also owns a very successful shopping center.
(He promotes it only by direct mail).
Are you
excited by the possibilities for your business? Well, wait to see
what’s next.
A
country's best known hairdresser?
You may already know of him. His name is
Stefan Ackerie.
His picture is in most shopping
centers in the form of a life size cut out next to the hairdressing
salons that bear his name.
Stefan
started out by offering Free Haircuts and he still does it today,
more than ten years after he started.
He knows
the average person comes 10 times a year and spends at least $30
each time, giving him $300 in turnover and perhaps $200 in profit in
just one year. If his stylists do a great job on the Free Haircut,
which they do, over 50% of people may become regulars. The costs in
labor and products for the Free Haircut? Around $8, at most!! With
the $200 in profit at the end of the year, he knew he could give
away the $8 style cut to get a new customer. Is he the biggest in
Australia? Yes, he is!! Because he understands that to give is to
get!!
But what if you don’t have a
restaurant, hairdressing salon, or tennis complex? Could you apply
this to your business?
Absolutely! Here are some examples.
Accountants, lawyers and doctors can give away:
a free consultation worth $150
Bowling centers - Free games
Supermarkets - coupons for Free food
items
Car service centers - Free first
service or Free brake checks
Muffler shops - Free muffler checks
Landscapers and Nurseries - Free lawn
reports….
any business such as clothing or any
retailer can simply have no strings attached Free gift vouchers of
$10, $20, $50, or whatever amount will work to bring new customers
to them.
A gas station can give $30 off the
first month’s bill for new accounts. An equipment rental company can
offer $100 of FREE rental for each new account opened.
A furniture dealer can offer a FREE
booklet, "How to decorate your home."
Look, anyone can use this technique.
I am always offering potential customers FREE Information and some
of those people end up spending thousands of dollars with me.
What I am really doing is "buying" new customers.
"Buying" new customers with an
irresistible offer really works, and it works amazingly well almost
every time. The only time it doesn’t work is if your offer is weak
or you target the wrong people.
Human beings are creatures of habit.
We keep doing the same old comfortable things we’ve always done. To
get a potential customer to break their habit of going to another
business, you must give them a very strong reason to try
you.
That’s why a FREE offer is so effective.
It’s a risk free way for them to get to sample your product or
service.
There is another exception when this
approach won’t work! It won’t work if your product or service is
lousy. If you don’t follow up your customers with Thank You notes,
letters, and other forms of personal communication. If you ignore
them after they buy from you….and in that case you deserve it.
Because good business is about developing relationships and keeping
in touch with your customers.
Isn’t it trust, if you don’t call or
write to your
friends
, you’ll soon lose touch with them? If
you are having a party and don’t invite your friends they aren’t
going to turn up, are they? How could they if they don’t know about
it? So come on, turn your customers into friends by showing them you
care. Keep in touch with them on a regular basis by mail or phone.
And watch those profits grow.
A word of caution.
Before you rush out and start making
free offers to the world….
Work out the Lifetime Value of your
customer and
test
all your offers and ideas on a small
scale. Analyze the results, adjust your approach if needed, and only
then go all out. If you test everything you do on a small scale
first, you’ll never get burned and go out of business.
But you will knock the socks of your
competitors every single time, because they’ll still be offering 10%
off.
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