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The one thing most businesses are failing at right now Posted on October 9, 2018
Out of all these meetings, one thing has stuck out that 80% fail to
do consistently and efficiently…and it has a MASSIVE effect on their profitability.
Let me explain.
There are only 7 ways to increase the profitability of your business – your customer database affects 3 of those areas:
1. Generating leads
2. Maximising customer retention
3. Increasing transaction frequency
Establishing and maintaining a customer database is the vehicle that makes it much easier for you to
convert more leads (prospects) into sales (customers), to maximise customer retention (ensure they stay for
longer) and maximise transaction frequency (or get customers to do business with you more often).
In other words, the more often you communicate with your prospects the more of them will buy from you.
The more they buy, the higher your profits will be. The same goes for your customers. The more you
communicate with your customers, the more they’ll purchase from you, and the longer they will stay with you,
which means the higher your profits will be.
Say that you have 3,500 prospects in you database. Now without knowing your sales conversion rate per month,
I will assume 10%. Let’s say you acquired another 15,000 leads in the surrounding area from a reputable
prospect/data list vendor. At a 10% conversion rate, this would mean and extra 1,500 members over the year and
the exercise would have well and truly paid for itself, depending on whether you have bought the datalist or rented it.
When you consider that 80% of businesses neglect their back end marketing (ie marketing to existing customers),
it’s critical that you don’t let the customers you have already won, fall off.
All of this needs to be contained and managed in a CRM (Client Relationship Mangement) system that makes it easy to market to your clients/customers.
Click here to come to a complimentary session we share with business owners on how to massively
BOOST their profits through CRM systems and Database Management.