Episode C3.007 Opportunities to Increase Share of Wallet with best Customers

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Shows Objectives - Segment 1
Today, we are going to be talking about how to increase revenue by focusing on your Best Customers. 

Remember to increase revenue in your business, you need to 

1. Acquire new customers
2. Increase the average transaction size
3. Increase the frequency customers purchase. 

In today’s show, we are going to focus on the second and third strategies. Next week, we are going to do an entire show on acquiring new customers. 

Over the last few weeks, we have talked about why it is more profitable to retain current customers than attract new customers. 

Why it is far more profitable to sell more products and services to existing customers than acquiring new customers? 

If you remember, we talked about:

Understanding who your best customers is incredibly valuable for several reasons
1)    It costs 8-10 times more to acquire a new customer versus retaining a current customer.
2)    Spend More
3)    At Higher Price Points
4)    Cost Less to Serve
5)    Tell others about you. Think word of mouth and referrals
6)    Once You understand who your best customers are its easier to attract more people like them

Today, we are going to talk about how to increase revenue by focusing on your best customers.

Have you ever thought about a roofing company? Roofing companies face an interesting dilemma. On-one-hand getting a new a roof is an expensive purchase. On the other hand, once you purchase a new roof, shingles companies are now offering 50 year and lifetime warranties. Plus, the warranty is transferable when you sell the home. 
This creates an interesting dilemma for roofing companies. How do they stay in business when customers only need the product once every 50 years? 
How do we sell more products to current roofing customers, when customers don’t really need our main product? 
What can we do so we are not always chasing new customers? 
How do we offset the price of customer acquisition? 
That’s what we are going to be talking about today. 
How to create opportunities to increase revenue with current customers. 
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Key Issues - Segment 2 

1. How to create additional products and services for your best customers?
2. How to get people to purchase more often?
3. Become a Publisher- publish your knowledge, every business can create a free and paid newsletter, write book, build a list of prospects and customers.  

What You Need to Know - Segment 3 

Roofing Example - 

Partnering with Other Companies - Direct and Indirect Competitors - One to Many Relationships

Creating Additional Revenue Opportunities 

Creating a Variety of Products and Services with Different Price Points 

Link Your Products so there is a natural ascension. 

Current Customers are worth more to our business than 

What You Need to Do​ - Segment 4 

Identify your best customers are- 
Create products that only cater to your best customers. 
 
Continuity/Subscription Pricing Models- Examples software company examples, car wash, membership club- 

Reason Why Marketing - anniversaries, birthdays, holidays, and othe special days on the event calendar 

Shows
Previous: Episode C3.006 Opportunities to PLUS 1 the Relationship  
Next: Episode C3.008 Identify New Users for Existing Offer

Written by Charles George

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