How Do You Go About Buying Customers?

Ludicrous! Buying customers?! Absolutely absurd!  Begging for customers, pleading potential clients, trying to lead unsuspecting customers in the door… How do you bring new customers into your business?

Have you ever just published an ad? On the radio, on TV, in a newspaper or a flyer, hoping that somehow it would magically bring new customers in? It is okay if you answered yes. As a matter of fact, give yourself a round of applause for being like 95% of business owners I speak with about marketing. Fortunately, the following information provides you with the tools to get better customers and get them at a discount!

A client recently asked, “I can’t just go out and buy a customer, they have to come to me. Don’t they?” What a great question. When I speak with business owners, the idea of investing in stock is common. When we discuss marketing investments, we buy new customers. The next question is how much do new customers cost?

To figure this out, let’s take an example. You put $1000 into an ad campaign. As a result, 100 people call you. Let’s say that 1 out of 5 of these ‘Leads’ actually comes in and buys from you. Working out the numbers it cost you $10 to get each Lead. It cost you $50(5X$10) for a sale. In this example, a new customer cost you $50. This is your ‘Customer Acquisition Cost’.

Now it gets exciting. Now you know your specific marketing campaign is going to cost you $50 for every new customer it brings in, and that every new customer eventually spends $500 with you, of which $100 is profit. How many times would you invest that $50 to buy more customers? Let’s see… spend $50 make $100, spend $50 make another $100 and so on… Clearly, it makes sense to repeat that as much and as quickly as possible.

Does it seem too good to be true? Because it really is that simple. When you discover how much it costs to buy a customer you are able to see a change in profits, as long as you are making more per customer than your Customer Acquisition Cost. To know your true acquisition cost, test and measure every marketing campaign. Give me a call at 305-899-9963 and I’ll show you how.

Once you understand that your whole business is a marketing unit, you begin to see why the amount you pay to buy a customer is your biggest expense.

Eventually, you discover ways to earn more on your first sale than you spend on advertising. That first sale could come days after your new marketing. You could put in place low-cost strategies to get the same customers coming back over and over while buying even more per visit from you.

That is when you really start moving forward, when there is an ever increasing stream of revenue. Use this small step to increase your earnings significantly!

If you would like further information or you have any questions about this blog give me a call at 305-899-9963 or email me at [email protected] and we’ll make it happen.

Coach John
“Living beyond the ordinary”

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