Episode C3.009 Balance Between Selling to the New and Servicing the Old

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Introduction
Today’s topic focuses on how much do you need to focus on customer acquisition versus customer retention. 

How much time do you allocate to acquiring customers versus retaining current customers. 

How much of a budget do we allocate to acquiring customers?
How much of our marketing budget do we allocate to customer retention?

Can we build systems that help automate acquisition?

Can we implement systems to help sell more products and services to current customers?

Is there a balance between customer acquisition and customer retention?

Show Objectives - The Why
3 Ways to Increase Revenue

• Acquire New Customers, Increase Average Transaction Size, Increase Frequency Customers 

Current Customers

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

Overall marketing budget percentages towards acquisition vs retention?  
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Acquisition - 
Are there automated ways to generate prospects, and how can we convert them into first time customers?

Retention - 
Once prospects purchase, how can we lead them to purchasing multiple times to become advocates. How can we use automation to achieve this? 

Key Issues- Owner Perspective: 

1. review the marketing & sales process for improvement to handle fast or hyper sales growth - building it robust enough,
2. build processes for servicing the customer post sale - building it robust enough, 
3. how to track the balance between effort spent closing deals with first time customers - and effort spent on service accounts closed to create opportunities for upselling.

What You Need to Know - Customer Acquisition - 
Lead Generation - Lead magnets and landing pages 

Facebook ads to generate leads and sales 
Dedicated/Solo emails - 
Being a guest on other people’s platform- podcasts, Facebook & YouTube Lives, contribute content to their site blog posts, newsletter articles. 
How can you add value to the person’s audience?
Creating Your Own Content for social media, website, etc. building your own audiences. 

Converting Leads to Customers - 
Low price point upsells - books, reports, smaller items and services where customers can get a taste and experience what it is like to do business with you. 

Sales Pages on your website

What You Need to Do​​ - Customer Retention 

Automated Selling Systems- shopping carts that have these features. 
Upsells & Cross sells
Higher price point products- Follow up with Phone Calls, and Zoom meetings. Conversations Lead to Conversions 
Email Newsletters & Promotional Emails 
Facebook ads targeting specific customers with specific offers
Direct Mail- Sequences
Customer Rewards Programs

Develop systems that automate some of these processes so the company can scale. 

Shows
Previous: Episode C3.008 Identify New Users for Existing Offer  
Next: Episode C3.010 Customer Recovery

Written by Charles George

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