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Hi,
I take it by the number of newsletters I have received this
week that a lot of businesses are finally getting their act together and
building their customer base and using that customer base to either sustain
their business or build their business.
There are two issues I want
to address in regards to the newsletters.
1. It
is always easier to sell to a customer that you have
built a relationship with than to buy a new one
2. Make
sure that your newsletter has value and is not just a Sales Pitch
Whether you realise it or not when you acquire a new
customer there is always a cost. Every customer you have acquired in
running your business has cost you money. The cost per customer can be
calculated by the following formula:
Total Advertising Expenditure/Number of Actual Customers
So for example, if you
spent $1,500 per month on advertising and you received 227 Customer Sales, then
the cost to acquire each customer would be - $6.60. That means, that
to make any money from this acquisition you would have to make at least one sale
with a value greater than $6.60 to cover just the cost of the acquisition.
In fact, if you were a retail store, most companies spend 5% of their turnover
on advertising (Source: EBC Benchmarking Guides), which means in reality, to
make the customer viable you would need to sell them a product worth $133.
Here is the reality -
most companies need to sell to their customer 3 or 4 times before they actually
start to make a profit from those customers, so if you don't keep your customer
details and build a relationship with them, you will never make a profit unless
you have an extremely high profit value product or service. This issue is
one of the reasons why most small businesses fail in their first year. The
acquisition costs to build a customer base from scratch is incredibly difficult
and expensive.
One of the reasons I have
started or bought other businesses is to leverage my existing customer base, so
that I can improve the Return on Investment of Acquiring you as my customer when
I first started out. This is also why I spend so much time trying to value
add and to look after you and ensure that you stay a viable customer.
The secret to successful
business is leverage. The more you can leverage your existing customer
base, the more you will be successful. I want to take a moment to talk
about a few ways you can leverage your customer base by working with other
companies.
In my customer list at this
moment in time there are these four types of businesses:
1. Builders
2. Plumbers and Carpenters
3. Scaffolding Suppliers
4. Personal Trainers
These four business types
could work together to build a network and to help build business together by
leveraging their customer databases. So here is how you can do it -
1.
Each group should be sending out at least a monthly newsletter
- Builders - should do it because Statistics show that most people
who own a home upgrade every seven years and you
wouldn't want them going elsewhere
- Plumbers and Carpenters - should send out a newsletter to remind
people of the yearly tasks they need to complete and also
how they can improve efficiency around the homes
- Scaffolding Suppliers - should sent out a newsletter to broaden their
client base. In bad economic times people start to focus
on upgrades rather than build new homes. People need to
know their obligations for safety when doing those upgrades
- Personal Trainers - should send out a newsletter to help motivate their
clients but also give them hints and tips on improving their results
2. Personal Trainers are valuable to
builders because if a person has a
personal
trainer it is a pretty good indication of the person having a higher
income and
therefore more likely to buy larger homes (sorry if this statement
upsets you
but I looked into the statistics and it turns out to be true). In this
cases the
builders should advertise in their personal trainers newsletters.
3. The builders are valuable to
personal trainers because the personal trainers can
write
articles on how to move into there new home safely, or how to look after
your back,
how to build up your fitness in readiness to more and much more.
4. Builders, scaffolders,
plumbers and carpenters are valuable to each other
because
they are in an associated business. For example, who do you call
when 12
months after you have been in your home and the tap leaks because
the
washer has leaked.
If you look at these
four business types there are lots of opportunities that each of the companies
could do to build their business just by working together. Successful
companies do network with each other to achieve their objectives. Our
weekly networking sessions (Tuesdays 06:00pm) would give you an opportunity to
toss these sorts of ideas around with other like minded businesses and to see
who you could work with to build your customer base.
The other key issue with
newsletters is to provide quality material in the newsletter. A very large
number of newsletters I have seen over the last few weeks have not had
substantial information in them and this is critical. I have heard lots of
comments like, "I just don't have time to write an article or I don't know how?"
Two resources that will solve that problem that I use are -
Ezinearticles.com - who provide free
articles you can use on your
website and in your newsletters
eLance.com - is a place where you can hire
individuals to write you an
article and it can cost as little as $40.
One of the arguments that I
also get is that people do not want to read a lot of information. Well I
disagree because every week, I receive email after email telling me how useful
and powerful the information that I provide has been to their lives and their
business. The more information people can glean from you through your
articles, the more credibility you will build with your customer base.
The more you commit to
educating your customer base, the more they will commit to you!
Finally this week the two books I am recommending are -
The Secret of Getting Rich (By Wallace D Wattles)
The Master Key System (By Charles Haanel)
Once again both of these books are free ebook downloads
and will help you on your path to success. The links to get these books
are on the right hand side of this email.
Well once again, have a great week and remember
one thing Success is a Habit.

Chris Le Roy
Managing Director
One-on-One Learning Centre
Watched "The Secret"? Learn how I used it...
http://oneonone.thesgrprogram.com
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