3 Current News Events Today
Here are three current news events in business today:
1. How a Business Calculates its Acquisition Cost.
Business XYZ, Example 1:
(A) Total Marketing Costs for current year = $15,700
(B) Total Number of New Customers in current year = 85 customers
Acquisition Cost Per Customer = (A) ÷ (B) = $185
* Note: For a more accurate picture, work out your Acquisition Cost per campaign after EACH marketing campaign: i.e. For an Advertising Campaign that cost a total of $1000 for the ad and $250 for miscellaneous follow up costs that brought in 25 customers, the Acquisition Cost is $50. Knowing the Acquisition Cost for each individual campaign will tell you which are the more effective campaigns and which ones bring in a higher number of clients at a lower value.
2. How a Business Calculates the Lifetime Value of a Client.
Business XYZ, Example 2:
(C) Total Revenues (example) over 3 years of a customer since the beginning = $49,085
(D) Average Gross Margin = 37%
Lifetime Value = (C) x (D) = $18,162
An AMAZING point:
Ask yourself this: how much are you willing to invest, per customer to grow your business? Let’s say you are turning in Profits of $18,162 per customer, would you be willing to spend more than $185 to acquire a new customer? And how much would you spend on Customer Service to secure these clients for longer periods and more revenues?
3. How a Business Understands its Selling Experience.
Or maybe I should say your customers “buying experience”! When was the last time you looked at how you look after your customers as they decide to buy from you? What are the key points of your selling experience that your customer will focus on either consciously or subconsciously? And once you have determined them, how can you enhance or improve them?
Following is a checklist of some examples that you may like to consider:
- The initial phone call
- The signage on your building
- As your customer enters your premises, is it clean and uncluttered?
- Can everything you have for sale be accessed easily?
- How are your customers approached by your sales team?
- When they pay for their purchase, is it easy for them to buy from you?
- How is it delivered – if you deliver?
- Does you customer have the same experience each time they buy from you? Is the experience consistent?
Take off your shoes and get into the shoes of your customers. Go to the front door of your premises and with fresh eyes walk through your customer’s buying experience. Is it excellent or could it do with a little improvement? I believe there is always room for improvement; always be asking yourself, “How can I improve this?” What can I do to enhance what I’m currently doing? How can I incorporate some “WOW” factor into this crucial part of the continued success of my business?
We trust these 3 current news events today have been helpful to you in your business. To learn about three more current news events in business today, contact John Layzell at 305-899-9963.
My vision is success and prosperity in South Florida through business re-education.
Call me now at 305-899-9963 to schedule your complimentary coaching session.
Synergis Business Solutions, Inc.
North Miami, FL
Email: Click Here