If you have been following me for a while, you know I am a big fan of Jay Abraham’s three ways to grow a business. So much so, I believe there is actually a fourth way.
But I also see a problem.
He doesn’t unpack what’s underneath each of those high-level strategies.
As a reminder, here are Jay’s three ways:
1. attracting new customers
2. getting customers to spend more
3. getting customers to spend more frequently.
And I’ve added a fourth:
4. getting customers to stay with your business longer
In this email, I want to unpack number three and number four for you, as I believe these are the way to make your business more profitable.
So, how do we get our customers to spend more frequently?
Well, this one is all about understanding our customers and understanding what they think about us, our service, and our products.
To do that we need to gather and analyse data and customer sentiment.
In its simplest form that’s NPS.
Through NPS, your customers are telling you exactly what you need to know.
Naturally, the next step should be to fix the problems and accentuate the good performances that your customers pointed out.
Do that, and you get them spending more frequently and staying with your business longer.
And how do we get customers to stay longer? This is about lifecycle management.
You need a specific strategy in place. For each stage of a customer journey.
Start with your onboarding sessions. Make sure that the onboarding process is smooth and educational.
Your next hurdle is making sure that your customers use your product or service frequently, so they get the maximum value out of it.
And then when the customer gets out of a contract, what are you doing to resell, resign that customer, or offer them a service so good they don’t need a contract and don’t want to leave?
Finally, you must work on your churn management. You need to be able to capture why your customers are leaving you. Once you understand that, you can start addressing it.
Sorry, let me re-phrase: you MUST address it.
It costs seven times more to attract a new customer than it is to sell to an existing customer.
And not only that, but a 5% increase in sales to existing customers can generate somewhere between 25% to 95% increase in profits.
Don’t delay getting to know the people who pay you money, so they stay longer and purchase more frequently from you. Want to learn more? Download my eBook here https://www.marketfit.co/unlocking-hidden-customer-profits-ebook/