Finding New, Profitable Customers
Some businesses seem to get amazing results again and again through their marketing. Others struggle just to get the phone to ring. And of course, there are those in between – doing pretty good, could do better. One reason for consistent results is simple.
Testing and Measuring
Successful marketers test their results, make changes (if necessary), and repeat those programs which work. This involves trying out different headlines and sticking with one or two that returned the largest number of sales. After all, you’re not in business to get your catchy name out there – you’re in business to get sales.
When do you know that your programs have won? There are two questions that must be asked in order to solve this client acquisition equation:
How much does it cost me to acquire each customer?
(Divide cost of ad by customers acquired)
How profitable are my customers?
(Multiply average annual sales per customer by the average number of years they stick around)
Now subtract 1 from 2. Answering these two questions will enable you to identify those programs that are bringing in customers profitably.
Do this with each ad, campaign, promotion and salesperson. Then compare the results to determine which ones work out the most profitably. Drop us a line at
consulting@ragstomillions.com for a free report on 4 steps to increase your advertising results by 16% plus more information on testing and measuring.
