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
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)
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
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.
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