You are, at this moment, standing, right in the middle of your own ‘acres of diamonds.’ – Earl Nightingale
Perhaps you have realized as I have that most people look for opportunity everywhere, except where they are most likely to find it–right under their own nose.
A good example is people who want to grow their businesses.
I am writing to business owners here.
But this is just the same in someone’s career, financial and personal life as it is in business.
Anyway, what is this overlooked business growth opportunity?
An overneglected way to grow your business
Many business owners come to me and ask for ways in which they can increase their income.
And they ask to share my ideas for getting new customers through the door.
Clearly, they believe that acquiring new customers will help them solve their growth problems forever.
Time and again, I have to help them see that their gold mine for additional sales is hidden in plain sight, right under their own nose.
It is their own customers who are usually undervalued and overneglected.
And I tell them what they should do is take their customer list and polish it until it sparkles.
There are several reasons why I recommend doing that.
For one, your best prospects for future business are your own customers.
Once someone buys from you for the first time, you know they are interested in what you have for sale.
Just start selling these high quality prospects some additional stuff.
It is so much more effective than aiming your sales rhetoric at crowds of untargeted prospects that may or may not be interested in your messaging.
Second, the list of customers you sold your products to already knows and trusts you.
Hence, it is so much easier to resell an existing customer than it is to get a new customer to buy.
And third, the cost of reselling an existing customer is insignificant compared to the cost of acquiring a new one.
It may cost you a lot of money to generate a new customer through marketing and advertising.
But it only costs a few bucks to contact your own customer on the phone.
And it can even be free if you use email.
So once you’ve developed a customer, you have the most cost-effective and straight way to create repeat business for yourself.
All you have to do is to establish an ongoing dialogue with them.
Finally, this ongoing communication leads to ongoing sales … meaning the back end.
And that’s where the huge profits usually come in.
Because if you can send offers to these customers, as many times as you wish and you pay nothing to contact them (if you use email), and you do not need to spend a cent on additional marketing or advertising, basically all the money you will make from the extra sales will be pure profit.
So in reality, it’s old customers that are the key to growth and profitability in any business – including yours.
Now this does not mean you shouldn’t get as many customers as you can into your business.
By all means, always try to get new people to come in through your door and try your product or service. (Some businesses live by their ability to constantly generate and convert leads).
But at the same time, that’s only part of the business growth strategy.
I say this because many, many businesses do not make a decent profit on the initial sale.
Instead, they simply recoup their client acquisition—and cover advertising— cost on that initial purchase.
Businesses that only break even on the front end cannot survive in this world without having a back end business.
In fact, all businesses, even yours, should have a strong back end
business — even if you are making many times your advertising cost back on the initial sale.
Just think about it.
Successful businesses spend a good amount of money on marketing and advertising.
These firms hope to reach a vast audience of people who’ve never tried their product or service.
But they are happy to do business only with a fraction of this audience.
They are happy to break even on their marketing and advertising campaigns because they know from past experience that these new people may buy $100 worth of goods from them and remain a customer for the next 6, 12 months or 3 years to come.
And they know from applying the principles of effective marketing that, even if only a fraction of this audience responds to your offer, that is 10, 50 or 100 brand-new, first-time customers — or sales.
Once you have your first-time customers, you have a list of qualified buyers that you are certain are interested in your products and services.
And if these first-time customers are satisfied with their first purchase, half of them will come back to buy again.
That’s where you start making huge money.
If you want to be rich in your business … you have to collect their names, address, and all the valuable information that will help your marketing.
Simply maintain a nonstop dialogue with them.
Repeatedly offer them to buy something else from you.
Do this until you are getting less and less response from them and … no other group of people (or names) will be more responsive or profitable than the customer list you have.
And that’s the point.
You can still make a lot of money if you bring back just what you spent on marketing and advertising as long as you have a huge back end.
Because you, being an effective marketer, will systematically contact all of your customers and ask them for more business.
As you stay in touch with those customers (and get them used to buying from you), you will build up your repeat business – and make a bigger and bigger profit from them.
You will have also learned that it pays to acquire customers at a break-even or even a small loss in order to develop a list of buyers who will be profitable names for your firm over a period of time.
In the end, it’s safe to say that your customers’ names are the most powerful asset you will ever possess in your business.
If you’ve been focusing all your growth thinking on getting new customers, I suggest you take that list of customers you sold your products to and polish it until it sparkles.
To get more details on how to make yours shine like a jewel, go here: https://corinneessono.com/newsletter/