Recession Marketing Tips: The Power of Lifetime Profit
I’m about to help you find thousands more dollars in your marketing budget—resources you probably never knew you had. That’s because chances are you’re currently spending a lot less on marketing than you can afford to.
Yep, you read that right.
Chances are you’re currently spending a lot LESS on marketing than you can afford to!
I’m talking about the Lifetime Profit Value of a customer. And when you know what it is, you’ll begin to appreciate what a good customer is worth to you, and how much you can afford to cultivate one.
So what is it? Simply put, it’s the actual dollar amount your average customer generates over their lifetime.
This is a concept that very few business owners fully appreciate. Armed with this information, you’re ready to take on the world and give yourself this vital leg up on your clueless competition.
In order to calculate this crucial figure, you’ll need the following information handy…
1. The average dollar amount collected per purchase
2. Your average profit percentage
3. The average customer’s frequency of purchases
4. The average “life span” or amount of time you keep a customer
Now let’s take a look at an example to see how the formula works…
Suppose you have a massage therapy practice. Let’s look at the numbers…
Average transaction, $47
x profit after marketing, 50%
collections, overhead, etc.
= Average profit per visit, $23.50
Average profit per visit, $23.50
x frequency of visits, 4x/year
x average lifespan, 8 years
= LPV $752
What does all this mean? It means that you can spend up to $752 to attract a single customer–and still break even! Now, who wouldn’t spend $94—or even $150 or $250—to make $752? That represents an ROI of upwards of 300%…400%…even 700%!
So why is this important to you?
This tells you that you can do a whole lot more than you think you can to attract high-paying customers to you. What’s more…you can do a whole lot more than your competition thinks they can do to attract high-paying customers to them!
That means you can make better offers…be more generous with current customers…give more back to the community…get your name out there in lights…
And still make a heck of a lot more money than that scarcity-minded business owner down the street, who is clinging to each and every dollar like it’s his last.
You’ll find you’ve got tons more resources to work with than you ever realized.
So get out there today and start making offers, marketing your business, and generating new customers!
For more information on an exclusive, step-by-step system that shows you how you can recession-proof your business in 90 days or less–using proven low-and-no-cost strategies–CLICK HERE NOW.
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