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Points 7 and 8 in your 10 step plan

Nice to speak to you again and welcome to points 7 and 8 of the 10 key points to doubling your turnover. The next two points contain to principles that are going to revolutionise the way you go about business, when I discovered them and understood them they were one of my biggest breakthroughs in my own business life and I can’t wait to share this information with you.

Here are points 7 and 8.

  1. The “Buying Customers” Principle.

The buying customers principle is literally what it says on the tin. How much does it cost you to buy a customer? This is why I get so annoyed when I hear companies talking about marketing budgets, when people talk about marketing budgets they are basically saying “how much money can I afford to loose as I don’t really know how effective my marketing is”. Marketing budgets are utter nonsense!

Let me put this in simple terms. If we were sat in a pub having a drink and you had £100 in your pocket, and every time you gave me £100 I would give you £1,000 back, at what point would you stop giving me £100. You wouldn’t. This is what the buying customers principle is all about.

Go through your facts and your numbers, I cannot stress how important knowing your numbers is, and work out exactly how much you are willing to spend to get a customer. When you have figured this out, you will no longer even utter the words marketing budget, as you know as soon as you spend a certain amount (providing your marketing and sales team are effective) you will never stop spending that certain amount to get a customer.

  1. The “Customer Value” Principle.

This is a very simple principle, find out exactly how much on average a customer is worth to you over 3 years. This then allows you to see the exact return you get over a certain period of time from the initial (usually very small in comparison) investment you made to buy the customer.

Lets go back to the sitting in a bar together example. If you worked out that it costs you £100 to buy a customer and that over 3 years you will receive £1,000 from that customer (if not more) are you going to stop buying new customers?

I urge you to take the time to go and work out these numbers and start to make sure you get rid of this fantasy that you have to have a marketing budget; people that have strict marketing budgets are no good at marketing. However this does not mean go out and find £1,000,000, give it to someone and hope it works. You still have to keep tabs on everything making sure that it is working and you will find that things plateau at a certain point, so the secret is keeping your spend and return in that sweet pot seeing a maximum return every time.

I hope these 2 principles really open your eyes to ways you can increase your turnover dramatically and how simple it can actually be sometimes.

Next time it is the final two points of the 10 key steps.

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