Kevin Clark (“Mr. Entrepreneur”) is a high-energy champion for those who want to start a business or get more profit out of their business. He’s a regional winner of the prestigious Entrepreneur Of The Year Award and was inducted into the Entrepreneurship Hall of Fame.
Pretty impressive, don’t you think? Me, too! But just wait until you read what he has to say about increasing the buying frequency from your customers. You’ll be truly amazed at how easy it is!
KARON: Hi Kevin. Thanks for your time today. I just know you have a world of information about how we can all increase profits without the huge expense of marketing to and getting new customers.
KEVIN: My pleasure, Karon. I’m ready to go!
KARON: I’ve been to your site and you talk a lot about the “lifetime value of customers”. Most know that one-time sales are not the key to big profits. But is there a way to create a “plan” for increasing lifetime sales?
KEVIN: Yes, by understanding and using the following strategy:
Acquire customers at breakeven and make substantial profit on the back end.
KARON: Expand on that, Kevin.
KEVIN: Sure this is one of the most overlooked and underutilized strategies in your marketing tool kit for growing your business. The key ingredient is to determine if your business has a high probability of customers or clients who come back to repurchase the same (or different) products/services from you frequently.
If you do, you owe it to yourself to do everything within your power to get customers into the buying stream as quickly and easily as you can.
This technique focuses on keeping an eye not toward the beginning of the relationship, but on the continuation and recurring relationship from bringing clients into your business.
KARON: So, let me see if I understand you right. IF I have other products/services to offer, I can bring a customer into my business with a sale, a bargain rate, etc. as long as I have a strategy for getting them to buy repeatedly? Is that right?
KEVIN: Yes! The majority of your profits will come on the “back end”.
Ask yourself this question:
“How much would it be worth if I brought in an extra “X” new customers this month, not making a dime of profit on the initial transactions, but making enormous profits on all the repeat transactions for the next 12 months?”
KARON: Hmmm I’d have to give that some thought. I guess it depends on how many product/services I have to offer them, right?
KEVIN: Or, in your case, Karon – how many copywriting projects the customer needs.
KARON: True!
KEVIN: It is shifting the focus from making a huge profit from the acquisition of a new customer to making your real profit from the repeat business that comes from that customer.
KARON: So, give me some idea of what businesses this would work for. KEVIN: Almost anything. Record/CD clubs. Easy and attractive to buy from them the first time because they give you 6 CD’s for 99 cents, etc. They do it because it works and people come back and purchase month after month.
Contractors can make it a matter of practice that the first job done for any new customer is done at a reduced price (practically breakeven). They make certain the customer knows they are not making any money but that they do it to prove their ability and their performance.
KARON: And what about those who are just looking for a “deal”. How often does this backfire you get a lot of one-time bargain hunters who never come back?
KEVIN: 80% of first time customers come back and continuously repeat.
KARON: OK, so I’ve made a decision to market this way. What do I need to do get those back end sales?
KEVIN: The concept is quite simple. You have existing customers that trust you implicitly. It is very easy to introduce them to additional products or services that give benefits to their business.
It’s important for you to recognize that, just because you have customers that are not buying from you right now, these people are still prime prospects.
How about the record and CD clubs? Once you’re comfortable and are buying on a regular basis, they will introduce you to their video club or their book club.
Why? Because they know that many of their satisfied customers will gladly cross over and also start buying books or videos.
KARON: Where do we start?
KEVIN: Ask yourself this question, “What other products or services could I be offering my existing customers that would be a logical extension to the benefits they gained from the initial purchase?” To start, pick out a logical product or service, offer it to a small number of your customers and step back and see what happens.
A large number of your customers will purchase. That process alone is enough to dramatically increase your business.
KARON: Sounds very easy and it makes great sense! Thanks, Kevin! I truly appreciate the information.
KEVIN: It’s been my pleasure, Karon. Ask me anytime!
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