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Casual Articles - How To Determine Your Customer's Value
In any type of business, one of the most important aspects is your employee morale. While this may sound like some type of HR buzzword, it is a vital piece of the puzzle. Unhappy workers produce less work. Not to mention, the quality of the work usually leaves something to be desired. Happy workers produce more quality work. This is a simple fact of the busin
One in 100 business owners think about this You want to spend everything you can justify to bring in a customer as long as that customer costs you less than they earn you. If you can't afford to spend more than the entire profit from the first sale, remember you'll be making money just in a few months from them. Start out spending what your cash flow can justify. After a qua
I enjoy high-end music systems in my home and office.One day I called the dealer to order extra CD cartridges, wanting to pre-load them with different music. He was out of stock, but said more were coming soon.‘Great!’, I replied, ‘Could you give me a call as soon as they come in?’He was reluctant. ‘They’ll be coming in a few weeks. Why don’t
What is the current worth of one of your customers or prospects? It's the total profit of an average customer over the lifetime that they do business with you. That includes all subsequent sales minus advertising/marketing and your fulfillment expenses.
Let's say the average customer brings you $75 per sale. They re-purchase 3 more times in a year. Their average order amount is $300. On each $300 reorder, you make $150 gross profit The average life lasts 2 years. Every new customer is worth $975.
You reach the 975 by adding the $75 initial profit to the 3 other purchases each year of $300. Only $150 is profit, so $150 times 3 equals $450. If they do that for 2 straight years, that's $900 plus the original $75.
If this is our average customer and they're worth $975 in profit and it only costs you $30 through your advertising/ marketing expenses to get them, every time you spend $30 you receive $975 back .
You would be foolish not to increase your advertising/ marketing and promotional budget to produce as many of these $30 cost customers so you would spend $30 over and over and over again to get $975 back
Theoretically, you could spend $975 to get that customer because you know they will come back and spend $975 and you will break-even. Of course, we don't want to do this. Remember, this is an average customer. Some will buy more and some will buy less This is an average number.
Now you "know you can spend up to $975. You could just as easily be spending 100% of your $75 profit just to get that first sale because that's just the first sale's profit, and you'll still end up with $975 over the next 2 years.
If you offered to give that $75 service for free and it doubles your customers, it "would double your profits over the next 2 years.
One in 100 business owners think about this You want to spend everything you can justify to bring in a customer as long as that customer costs you less than they earn you. If you can't afford to spend more than the entire profit from the first sale, remember you'll be making money just in a few months from them. Start out spending what your cash flow can justify. After a quar
Learn Why Everyone Wants A Typing Legit Data Entry Working From Home JobWho Wants This Job?People all over the world are looking for a typing legit data entry working from home job. This is because working from home is made out to be as if it is the ideal job for everyone. You get to sleep in, and work in your PJ’s whenever you want. Sure beats the c
You reach the 975 by adding the $75 initial profit to the 3 other purchases each year of $300. Only $150 is profit, so $150 times 3 equals $450. If they do that for 2 straight years, that's $900 plus the original $75.
If this is our average customer and they're worth $975 in profit and it only costs you $30 through your advertising/ marketing expenses to get them, every time you spend $30 you receive $975 back .
You would be foolish not to increase your advertising/ marketing and promotional budget to produce as many of these $30 cost customers so you would spend $30 over and over and over again to get $975 back
Theoretically, you could spend $975 to get that customer because you know they will come back and spend $975 and you will break-even. Of course, we don't want to do this. Remember, this is an average customer. Some will buy more and some will buy less This is an average number.
Now you "know you can spend up to $975. You could just as easily be spending 100% of your $75 profit just to get that first sale because that's just the first sale's profit, and you'll still end up with $975 over the next 2 years.
If you offered to give that $75 service for free and it doubles your customers, it "would double your profits over the next 2 years.
One in 100 business owners think about this You want to spend everything you can justify to bring in a customer as long as that customer costs you less than they earn you. If you can't afford to spend more than the entire profit from the first sale, remember you'll be making money just in a few months from them. Start out spending what your cash flow can justify. After a qua
There was a time when all you needed to do to get that job was have the proper education and experience. Well that’s no longer the norm today. Human Resource specialists are well trained to look for the best communicators. Simply put, the better your communication skills, the better your EQ or emotional intelligence!.There are many companies who will take a
You would be foolish not to increase your advertising/ marketing and promotional budget to produce as many of these $30 cost customers so you would spend $30 over and over and over again to get $975 back
Theoretically, you could spend $975 to get that customer because you know they will come back and spend $975 and you will break-even. Of course, we don't want to do this. Remember, this is an average customer. Some will buy more and some will buy less This is an average number.
Now you "know you can spend up to $975. You could just as easily be spending 100% of your $75 profit just to get that first sale because that's just the first sale's profit, and you'll still end up with $975 over the next 2 years.
If you offered to give that $75 service for free and it doubles your customers, it "would double your profits over the next 2 years.
One in 100 business owners think about this You want to spend everything you can justify to bring in a customer as long as that customer costs you less than they earn you. If you can't afford to spend more than the entire profit from the first sale, remember you'll be making money just in a few months from them. Start out spending what your cash flow can justify. After a qua
Well its now 29/03/07 and still waiting for my first contract in the CP industry, IV been doing odd jobs here & there working with several companies doing door & VIP security.Sometimes things take that little bit longer than expected, although I have been approached about covering the VIP area of the reading rock festival in august, which is a good sign. they will come back and spend $975 and you will break-even. Of course, we don't want to do this. Remember, this is an average customer. Some will buy more and some will buy less This is an average number.
Now you "know you can spend up to $975. You could just as easily be spending 100% of your $75 profit just to get that first sale because that's just the first sale's profit, and you'll still end up with $975 over the next 2 years.
If you offered to give that $75 service for free and it doubles your customers, it "would double your profits over the next 2 years.
One in 100 business owners think about this You want to spend everything you can justify to bring in a customer as long as that customer costs you less than they earn you. If you can't afford to spend more than the entire profit from the first sale, remember you'll be making money just in a few months from them. Start out spending what your cash flow can justify. After a qua
It was the ancient Greek Philosopher, Heraclitus, who said, "nothing endures but change." That is certainly just as true today as it was in the time of Heraclitus, over 2,500 years ago. Change is all around us. In nature, in our personal lives, at work, everything is changing all the time. Sometimes the changes are subtle and we barely notice them, other times the
One in 100 business owners think about this You want to spend everything you can justify to bring in a customer as long as that customer costs you less than they earn you. If you can't afford to spend more than the entire profit from the first sale, remember you'll be making money just in a few months from them. Start out spending what your cash flow can justify. After a quarter or several months after their re-order profits come in, then you can step up your ad budget
Copyright © 2005 Abe Cherian
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