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How to Multiply Business Sales by Up to 9 Times in Just One

Article:

Do you know how much a customer is worth to you? If you don't

you should. It results in one of the biggest breakthroughs my

clients have.

Once you know what an average customer is worth, one of the

first things you'll notice is that there is likely more than one

type of customer coming to you.

We reviewed the average value of a customer for one of my

clients, discovered that there were at least 3 different types

of customers, each buying a significantly different average

amount, some were buying only one time, and others were becoming

repeat customers. Now we could clearly define who these people

were, how to find them, and decided that some were not worth our

time, others were our ideal target.

One of my customers, a construction franchise, had only done

$60K of business his first year. It went to $500K the next just

by finding the right customer based on customer worth.

When we started looking at what his customers were worth to him,

the first figure was $1,500, an average of all customers. Then

we saw that there were groups of different customers, some

buying less than $1,000, some buying $1,000-$3,000 and some

buying well over $3,000.

The ones buying under $1,000 were the hardest to deal with and

had the lowest profit margin. The ones over $3,000 were coming

back over and over, had the best profit margin, and referring

lots of other customers. Their total lifetime worth was

approaching $10,000.

This company had defined their customers according to the

national franchisor's suggestion, targeting a homeowner with

total family income averaging $50,000. But the customers buying

the most from them lived in a neighborhood where the average

income was over $75,000. So, I suggested that they send their

next mail only to those targets.

Another thing we saw was that the people buying less than $1,000

were the $50,000 average income neighborhoods. The $3,000

customers were from $75,000 neighborhoods, and the higher the

income the more they bought, the more they came back, and they

made more referrals.

They stopped mailing low income zip codes; these also had a very

low response to their previous mail. They started targeting only

higher income zip codes, and only to the $75,000 and up families.

The result: the immediate response was a 9 times increase in

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revenue on the very next mailing. The mail response rate went up

4.5 times, so they had 4.5 times more leads for the same dollars

spent only a week before. And, those customers were buying more

than twice as much. The total was 9 times more sales in just a

week for a small change.

I've seen this happen over and over as a company starts to

define how much a customer is worth to them.

So, define your average customer worth. Then track the actual

results and see if there isn't something you might learn from

being able to segment your customers by their worth to you,

total dollars on one purchase, total lifetime dollars, number of

purchases, etc.

About the author:

Alan Boyer, CEO of The Leader's Perspective, LLC is one of the

world's leading sales trainers & breakthrough specialists.

With over 35 years of business experience, he has catapulted

businesses lightyears ahead in weeks. Some double, some jump 10

times.

He helps companies worldwide reach further than they EVER

thought possible....FASTER

http://www.leaders-perspective.com/Sales-Training.aspx

mailto:AlanBoyer@leaders-perspective.com