Turning Math into Money!

Get out your adding machine, calculators, abacus, or slide rule... we’re going to figure the value of a customer!

Customer A drives into your store and purchases $10 worth of gas (don’t laugh, it’s a Smart Car), $4.00 worth of Potato Chips (opting for the more expensive “0 Trans Fat brand), $2.22 worth of beverage (he doesn’t really want 2 20oz drinks, but it’s such a great deal), and a $2.00 instant lottery ticket... (he lost). Total purchase $18.22... But hey... all of these marketing ideas REALLY worked right?

Customer B walks up to your store, still a little sleepy eyed and dressed in a neighbouring business’s uniform, and purchases a $1.29 coffee and a $2.19 microwaveable breakfast sandwich. Total purchase $3.48...

Which customer is more important?
The real answer... both of them, and from here on out everything else is a guess, but humour me if you will.

Over the course of a year, customer B will probably work 5 days a week, 51 weeks out of the year. He’s walking so he probably lives nearby. Is this $887.40 sale worth keeping? You BETCHA!!!

This is your customer base, and while everyone wants a BIGGER customer base, many people overlook the base (foundation) they already have in an effort to make it bigger. Almost every request for a direct mail consultation we receive starts with “I want to attract customers who.....” And while many of our clients are maximizing their client base (after all, they are our clients ) we get phone calls all the time going in the complete opposite direction. Our advice is start with the most VALUABLE and EXPENSIVE mailing list available..... YOUR OWN! If you add up the amount of money you have spent on advertising and marketing since the start of your business.... Then add in all of the customer service dollars you have spent, and divide it by the number of customers who’s contact information your currently posses, you will see what list seller in the direct mail industry would call a 401(k)!

So send out a holiday card, start a loyalty program, an exclusive sale or offer, do something to drive (or walk) the people who have put food on your table in the past back through your doors, possibly with a friend or family member. If you have spent $500 a piece trying to get them, isn’t it worth $5 a piece to get them back? 500 new customers did NOT move into your area yesterday, did you do anything to get 500 OLD customers back in?

Are you ready to?

LETS GO!