Doing Business in Hard Times

Secrets of Multiplying Your Income

From Existing Customers

Presented By: Denise Hester, M & M of NC 919-680-2878

What you will get from this seminar

A new way of looking at your business

Calculating the value of your existing customers

Multiplying the value of your existing customers for greater profit

What else you will get from this seminar

Nothing happens until something sells

We are always engaged in sales

Easier to sell to current customers

New customers sometimes more expensive

New customers sometimes more demanding & unpredicatble

What is marketing?

The relationship that allows you to attract and maintain sufficient customers who value your product or service enough so you can profit from that relationship

What is marketing’s role in business?

Establishes your competitive advantage in the marketplace

Defines your unique difference that customers are willing to pay for

What makes customers choose your business over a competitor

Remember ROGER

R Rank customers by their value to your business (Market Segmentation)

O Obtain info on what your customers value and are willingto pay for (Market Research)

G Generate value for each market segment (5 P’s)

E Evaluate the results

R Refine and repeat based on feedback from customers and your bottom line

Rank customers by their value to your business

Recency How recent was last sale

Frequency How often do they buy

Amount How much do they spend

List customers in each segment

A List All Stars (Visit often and spend the most)

B List Better-Than-Most (Visit less often and spend less)

C List Clandestine (Visit once in a while and spend little)

D List Defectors (Visit every once in a blue moon)

E List Extinct (No longer exist as customers)

Another Way to Rank Your Customers

Make a list of customers in each segment

A List

B List

C List

D List

E List

Observe 80/20 Rule at work during this exercise

Obtain info on what customers value by segment

A List

B List

C List

D List

E List

Generate buzz through marketing process (5 P’s)

The 5 P’s define your capabilities that give

you the competitive advantage in the marketplace

Proposition (Value Statement)

Place

People

Price

Process

Evaluate Results

Experiment with value proposition until you deliver what customers want

Alter the 5 P’s as required by your market

Use contact management system

1. Your memory (not recommended)

2. Index cards

3. Telephone

4. Computer software (Word processors, spreadsheets, point-of-sale)

5. Social media (Facebook, Twitter)

Repeat

Refine the value proposition to each segment based on measurable feedback

Repeat all the previous steps over again until you see a measurable difference in your bottom line.

Calculating the Value of Customers to Your Business

Secret #1: Exceed Expectations for A & B Customers

Lavish attention on these customers because they ARE your business from a cash flow perspective

You can only depend on A’s & B’s for cash flow

Keep them very happy

Secret #2: Migrate C customers into A’s & B’s

Intense market research to find what it would take to move C’s up the loyalty ladder to becoming an A or B

Understand why they are not visiting more

Enhance the relationship to provide incentive for more visits & more spending

Secret #3: Identify How Your Customers Want to Feel

Identify where your customers “live” emotionally

Determine their “state of being”

Connect with their wants & needs

Secret #4: Create the environment customers want

Some possible environments are:

Stress Relief

Safety

Security

Hope

Ease of Use

Dependability

Status

Summary

Business is all about relationships

Find out where you stand with ROGER

Build on existing base of customers you already know and who already patronize your business