Maximize your profits

Maximize Profits By Optimizing Your Customers
Turning One-Shot Sales Into A Continuous Stream of Income

3 Critical Elements To Growing Your Business

For many business owners and marketers, marketing only means getting new customers. True, getting new customers is important for every business but it is only one part of the OPTIMIZATION equation.

In order for a business to achieve exponential growth, it must do the following three things:

1. Increase its customer base.
2. Increase each customer's frequency of purchase.
3. Increase each customer's average amount of purchase.

Marketing must address all three of these areas to optimize a business. For some reason though, 95% of marketing dollars are spent on gaining new customers. But by failing to increase your current customers' frequency and amount of purchase, there's a good chance that you're wasting valuable resources.

3 Steps To Avoid Perpetual One-Shot Selling

Restaurants are a good example of perpetual one-shot selling. It's not that people don't come back necessarily, just that the restaurant makes no pro-active effort to get them back. That's why I'm going to use a restaurant to illustrate a simple 3-step formula that will keep customers coming back over and over again. This formula can and should be applied to every business.

• Step One: Capture the names and addresses of all of your customers.
• Step Two: Systematically contact all of your customers and ask them for more business.
• Step Three: Offer a reward when you ask for more business.

Sounds simple enough and it is. But I can assure you that any business that is struggling isn't doing it and 90% of businesses that aren't struggling could double their profitability-if they would execute this formula.

By execute, I mean contacting the customers either individually or by a letter that is computer addressed and laser printed and sent to them. I don't mean sending a coupon in the mail on the back of a lost child postcard (although those are good for finding customers in some cases).

The Myth Of Passing Out Coupons

What about a method that most small-time restaurants use: coupons. I'll submit to you that most people using your half-off coupon are looking for a deal more than they're looking for a good restaurant to frequent.

Think about the message the coupon sends to customers: Our place is so bad that we've got to give it to you at half price to make it worth your while. Plus you don't make any profit on the transaction.

You must pro-actively seek to work the back-end. Most businesses let their customers dictate what their buying habits will be how often they'll come back, how much they'll spend when they do buy, etc. Most businesses are reactive when it comes to re-selling their customers. If you already have sunk the cost of generating and nurturing a customer once, why not solidify the relationship and profit from him forever?

Start immediately to do everything in your power to gain repeat sales from your current customers. It may be something as simple as writing them a letter or giving them a telephone call. But one thing is certain if you don't ask for the business, your competitors will.

Joint Ventures: How to Gain $3.4 Million of Good Will in 30 Days

One of the best ways I know to leverage your time and marketing dollars is to enter into joint ventures with other businesses. The first place you need to consider when looking to maximize profits is reselling to your own customers.

If you agree that your customers are your business' most valuable asset, then you should see the potential profits available if another business will make its customers available to you. Available, that is, in the form of consignment of goods, an endorsement or a more integrated joint venture.

Joint ventures can work in one of two basic ways. First, you let other companies play off your customer base and then take a percentage of each resulting sale. Or second, work a deal with other companies to make their customers available to you and then pay them a portion of each sale.

The underlying principle of why this works is simple. A business will spend some finite amount of time, money, resources, and sweat developing a relationship with its customers. The customers will have some level of confidence in that company which translates into their willingness to respond to offers made by the company.

For instance, a company might spend $50,000 a year in advertising, $80,000 a year on commissioned salespeople, and $5,000 a month for prime retail space. These three expenditures alone not to mention dozens of others account for almost $200,000 spent a year to develop customer relationships. Now, if you work a joint venture with the owner of that store, you can access all of that money spent for the cost of a letter.

Joint Venture Marketing Offers Your Business The Ultimate Financial Leverage

There are thousands of ways to construct joint venture deals. You have to be willing to actively pursue and put together deals. When you present another business owner with a proposition, your approach is all-important.

Just like all good marketing efforts, you want to preach benefits to him immediately. Don't just go up to him and say, "Will you endorse my product to your customers?" You have to paint the picture first. You have to help him understand how it works. Not everyone understands the dynamics and leverage like you do.

The marketing function of a business can offer tremendous leverage. These concepts can be applied to almost any kind of business successfully as long as you keep an open mind and continue to think outside the box.