What are you doing to upsell, cross sell and repeat sell to maximize the lifetime value of your customer base?
The third R is resell. Once you've done all of the hard and often costly work of getting a customer, you need to make sure to maximize the lifetime value, or LTV, of that customer.
Whatever metaphor you want to use … mining your backyard … picking the low hanging fruit … the point is the same:
It makes more sense (both financially and from an efficiency standpoint) to fully capitalize on your existing customer base than to be constantly on the hunt for new customers.
The more value you can generate for and from each customer, the less you have to spend on marketing.
Which means you can increase your profit margins and/or reinvest the savings into your products and services—in the process making your business even more attractive to your customers!
In practice, this can mean increasing the dollar value of each transaction or increasing the frequency that clients buy, either by offering add-on services or upsells or cross-sells.
McDonald’s offers the classic example: ‘Do you want fries with that?’ ‘Do you want to supersize your order?’
These days there are so many cost effective and trackable ways to bring customers back to your business.
To give you just one example, consider SMS campaigns.
Text messages have a 209% higher response rate than phone, email, or Facebook, and 90% of SMS messages are read within 3 minutes.
Despite having easy access to new and cool tools, most businesses in our area are leaving money on the table because they’re not maximizing the resell potential of each customer.
Do you ethically (but effectively) prepare buyers from their very first experience with you to keep coming back over and over again?
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