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products or services that may interest the leads that didn’t buy and further reduce the cost per new customer of your core offerings. When I lay it out like this, it seems so simple. You may be wondering why you haven’t done this before. The answer is also simple: It requires an investment in nurturing those leads, and most business owners are scared of investing in nurturing because it is difficult to track the exact ROI, and they’re scared it won’t work perfectly from the start, losing them money. This fear of making a mistake, losing money, investing and giving your investments time to grow, and the difficulty measuring the effectiveness down to the penny is what keeps businesses small. Let me clear one thing up: It’s okay to make a mistake or even fail at something. What’s not okay is not being introspective and failing to take responsibility for the mistake. You need to understand what you could do differently next time.
because it changes how you operate and make decisions from the mindset of a small-business owner or technician to that of a CEO. The next area is how to get all you can from all you’ve got. For this example, think about the average number of leads you get per day, week, or month. On average, if you get 100 new leads, what percentage of them buy? One simple and easy way to see a massive increase in closed deals is to focus on how you can close more sales, generate more revenue, and increase profits on the existing leads you’re already getting. By working on improving your close rate or offering additional products and services to leads that didn’t buy, you may spend a little extra money in nurturing the leads. But compared to what it costs to get a new lead, done correctly, your overall cost per new sale will actually decrease. As an example, if you spend $100 to generate a qualified lead, but
If we go further, we could take the additional leads that didn’t buy whatever product or service they originally contacted you for and
If you want to grow and scale your company, one of the first areas I always look at is the mindset of the entrepreneur. Mindset may be the No. 1 area that keeps entrepreneurs from growing and achieving their dreams.
you have a close rate of 15%, your cost per new customer would be $750. Instead of forgetting about the 85 leads that didn’t buy, if you invested an average of $2 per month per lead for a year, and over the year, you closed an additional five sales out of the original 100 leads, each of the five extra sales you closed would only cost you
make another offer. Maybe we make an
amazing offer 60 days or 90 days after the normal sales cycle. We could offer a downsell from the core product or a totally different product and service from what they originally came to
us for. We could even make affiliate offers as a way to get a return on the investment we made to generate the leads in the first place. All of these strategies would have the effect of bringing down your overall customer acquisition cost and, believe it or not, actually increase sales of your core product or service. We could keep going and dig into what you do once they become a customer and how you handle increases in the number of visits per year or number of items they buy from you. We could easily talk about decreasing customer churn and the massive impact it has on profits, but we will have to save that for an article for another day.
$408 per sale. If we use dollar cost-averaging, your cost per new customer would decrease from $750 to $665. We could even take it a step further and offer additional
–Shaun
P.S. If you haven’t gotten a copy of my new book, “Stop Losing Customers Now!” we’re giving away a free copy to the first 100 people who text the word “Money” to 208-269-9111 . We’ll verify your name, address, etc., then ship out your book the next business day .
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