The 7 Step Process to Increase the Lifetime Value of Your Customers
Whether you consider yourself a startup entrepreneur or a pro, gaining knowledge to get better at what you do, or are attempting to do, is important.
Even the best marketers and entrepreneurs get stuck because there’s always so much to learn and they really don’t know where to start.
But taking it one step at a time certainly helps.
Every business is centered on customers…
There’s no point of doing business without customers so why shouldn’t you develop a strategy that focuses on them?
If you’ve been wondering what strategies, industry giants are using to dominate their respective markets or what makes brands like McDonalds a household name in their respective industry, we’ve got just the answer for you.
We have discovered a strategy that has worked for small and large enterprises alike.
It involves focusing on the customer and making sure the business acquires new customers frequently. Then formulating ways to keep them hooked to their products or services with upsells and promotional offers for new products and services.
It doesn’t matter whether you sell household appliances, digital services or pet food online, customer-centric strategies will always grow your business.
When developing a strategy that is centered on your customers, you need to think of three things:
• Increase the volume of new customers
• Sell them more products or services
• Sell to them more frequently
We refer to it as Lifetime Customer Optimization or LCO.
You’ll want to study this page carefully. Even read it a few times and commit it to memory. If you get this right, you’re whole paradigm should shift and it will be a complete game changer for you, your business and your future!
Learn the Steps to Lifetime Customer Optimization
The following diagram illustrates the flow of the LCO system.
Print the PDF version and post it up somewhere next to your desk. If you plan to execute this plan, you’ll need to reference it often.
Like the Internet giants, you can become unstoppable. Knowing how to apply strategies like SEO and PPC is just as important as understanding how they work. So you need to spend more time understanding how each of these online marketing strategies can be applied to help you attract new customers and increase the number of transactions made by each.
Here is a step-by-step process that will allow you to increase the lifetime value of your customers.
Finding a suitable market is the key to success. Who will buy your product or service? How often can they buy? If you don’t know who will be buying your product or service, there’s no point of setting up the business in the first place. In fact there’s no strategy in the world that will make your business succeed if it doesn’t have a reasonable number of willing buyers.
Also remember that it is impossible to build a profitable online brand without a sustainable market. You can’t afford one-time customers. You need to look for a product or service that people need on a consistent basis. It doesn’t matter how much you love the topic or subject area and the kind of passion you have for it. Don’t waste your time and money starting a blog on a topic that doesn’t have a viable market.
When determining whether your market is viable, you need to ask yourself 2 important questions:
• Is the group of potential buyers big enough?
• Will they afford the product or service?
To determine whether your market is large enough, ask yourself the following questions:
• Are the average monthly Google searches for your top keywords above 30,000?
• Are there any active blogs on the same product or service?
• Are there active forums on a similar topic?
You also need to ensure that the market you are targeting is able to generate profits for the business.
You can do this by:
• Checking if there’s anyone else offering the same product or service you are about to offer. If they are, then this may signify that your business idea is actually viable.
• Finding out if there are other businesses that don’t necessarily offer a similar product or service as yours but are targeting the same market.
• Looking for ecommerce sites that are targeting a similar market
The indicators mentioned above alone shouldn’t determine the viability of your market. In some cases, your top keywords may not have as many Google searches per month but that doesn’t mean the market is not viable. However, making sure your target market is able to reach the above criteria will increase the probability of your business succeeding.
Step 2: Pick a Traffic Source
You’ve got so many options when it comes to traffic sources online. In fact, getting traffic to a webpage should never be a problem for any business; you should just prepare to invest. But paying in order to get traffic to a page without understanding the whole process of customer acquisition and how to sell them more products or services frequently is only a waste of money. Spend money to acquire customers but know the whole process of getting the customer hooked to your product or service. All your investments will be worthwhile.
Google, Twitter and Facebook are just a few platforms that may promise you targeted traffic. SEO companies on the other hand want to offer you more traffic. So which one do you choose?
First, you need to determine what kind of traffic is worth your investment. Secondly, you need to discover how you are going to get the most value from this targeted traffic. The goal is to drive customers into the value optimization process. Without this, any traffic that you pay for will be a waste of money.
So which traffic source should you start with? We’d recommend you start with a single source and then expand to the other traffic sources when the first one works for you. Your options include social media marketing, banner advertising, search engine optimization and blogging. Once you are able to attract the visitors to your web pages, you can move on to the next step.
Step 3: Develop a Lead Hook
Once you attract traffic to your site, the next important step is to ensure every single visit generates a lead. You’ll obviously need a well-designed landing page which has all the components required to convert traffic into leads such as easy to use interface, enticing call-to-action and offers.
But you also need to think of something that provides a lot of value to that web visitor so that he/she is able to give you their contact information. This exchange of contact information is usually the first step of interacting with a prospective buyer. Increasing the number of people who submit their contact information at this point will really enhance the success of the business. The more leads you get, the higher your chances of acquiring new customers which is our next step.
Step 4: Create a Trigger Offer - A Deal No Prospect Can Deny
This next step involves generating new customers. Remember that generating leads doesn’t mean you’ve acquired new customers. There’s still a lot of work that needs to be done. But generating leads is a great start. It shows that there are people who have shown some interest in your product or service. So what do you do to transform these leads or prospects into new customers?
The solution is to offer them a deal they can’t deny. Irresistible offers are only developed once you study your target customers well. If you know that your customer is one that is highly enticed by a low cost then sometimes you may have to sell the product or service at a loss to you. The idea here is to acquire buyers and not to make profits. The profits will come at a later date and they will certainly pay off.
You may not make any direct profits from offering prospects amazing deals in order to acquire them but always remember that nothing is as valued as a list of buyers. You’ve actually seen these strategies being used by multinational companies all over. From organizations that sell TV screens at a throw away price to renowned restaurants selling meals worth $50 for less than $20. What they aim at doing is to get as many paying customers as possible even if their profit margin may be at risk.
When you understand that, acquiring a list of new customers will generate profits in the long run and we will discuss how in the next few steps. So now that you know how to acquire some new clients, be ready for the next crucial step.
5: Promote Your Core Offer
At this point, you’ve made 2 important milestones:
• Getting the web visitor to become a prospect by submitting their contact information
• Converting the prospect into a new customer by giving an offer they can’t resist
So the next important step is to boost the sales of your core product or service. Every business has that main product or service that they want to promote. Don’t waste time marketing this core product to prospects at the initial stages. Bring it along at this stage where you’ve already acquired new customers and you want to offer them your main product.
At this stage, you may or may not make profits. In fact, you shouldn’t dwell on the profit making yet. Spend more time acquiring new customers and making sure they are buying your core products. Many successful ventures have utilized their profits made at this stage to acquire new customers and it has worked totally well. They wait until the next two stages in order to make profits and this has worked well for them. So long as you can keep new customers flowing in, there’s nothing to be afraid of. Spend more money acquiring traffic, increasing conversion rates or providing even better offers on landing pages.
Step 6: Develop Profit Maximizers to Increase Your Profits
Some people assume that the only way to maximize profit is selling the core product at a high price and getting the most out of it. This is certainly not true. Companies that try to make profit on sales of their core product usually struggle a lot. They struggle partly because they are marketing these core products to prospects instead of newly acquired customers.
Consider a company such as Amazon. Whenever you make a purchase on the site, they will quickly show you what other people who’ve bought the same product also buy. The list of additional items is certainly their profit maximizer. They know that newly acquired customers who have managed to buy a product from Amazon are likely to buy another product, which may not be offered at a very low price. This is a nice way of maximizing profits.
In order to come up with a strategy that will maximize profits, think of something that you can bundle with your main product or service in order to entice clients. It can be anything from a warranty or free installation to a club membership or coupon. Whatever it is, make sure you are cross-selling it to customers. The minute you find that item that allows you to maximize profits; you will be well on your way to success.
Step 7: Engage and Make Them Repeat Customers
The last and most important step is to ensure you don’t lose out on any customer and that they come back to your business whenever they need the same product or service. You can do this in several ways. First, you need to always market to your customers. Effective email marketing can generate a lot of return business given that you already obtained your customer’s contact information at the beginning. You may also consider coming up with new offers and making them known to customers through various platforms such as social media and content marketing. Utilize platforms like social media and blogging to maintain strong communication with your customers. Contact your customer to offer them something more than just a product you are advertising. If you can reach out to your customers a little bit more, in promotional and non-promotional ways, you will increase the number of times they do business with you.
So instead of just blogging for the sake of it or implementing social media campaigns only to attract customers and lose them the minute the campaign ends, follow our simple strategy and start acquiring new customers and maintain them for life!