Sandy Mehalko - 3 Most Powerful Things To Build Your Business

Powerful Strategies a (Not-Yet) Powerful Woman Can Use to Build A Powerful Business

The 3 Most Powerful Things You Can Do To

Build Your Business

Who the heck is she?

www.ABAdvisors.biz

Why?

The Real Cause Of Business Failure…

It’s Not What You Think

Three Simple (But Powerful) Things

I. Customer Strategies

1.Get more customers!

2. Upsell, Cross-sell, Package and Bundle

3.FREQUENCY

4. RETENTION

EXCEED Expectations

Recap

The 4 customer strategies: 1. Get more customers 2. Get them to spend more 3. Get them to buy more often 4. Extend their buying lifetime

II. Lifetime Value

Lifetime Value

Example3x a yearnet profit of $50 on each sale.$50 x 3 times per year = $150 net

profitSame customer does business with

you for an average of 5 years5 year period (or their “lifetime”

of doing business with you) x $150.00 = $750.

Lifetime Value Con’t

Base of 1,000 1,000 customers at $150 a year nets

you an annual profit of $150,000. Increase each of the 4 ways to grow

your business that we discussed by only 10 percent.

1st - customers go from 1,000 to 1,100.

2nd – avg profit increases from $50 to $55 3rd - avg number of purchases per customer increases from 3 times a year to 3.3 times

Lifetime Value Con’t

Annual profit

From $150,000 to $199,650.

Increase of nearly $50,000 a year…or 33.1 %!

Lifetime Value

5 years up 10% = 5 ½ years

$750,000 to $1,098,075!

An increase of $348,075… or 46.4 percent!

Lifetime Value

ADD: Referral Generating System

10% of your 1,000 customers refer =

100 customers who will bring you profits of another $99,825 over the 5 ½ years.

PLUS $1,197,900!

Lifetime Value Calculation

1. Average sale per customer ______2. Less hard costs ______3. Times # sales per yr ______4. Times # years ______ (buying lifetime)

= Lifetime Profit Value of your customers.

Recap

3. UCA

Identifying, Quantifying and Articulating your Unique Comparative Advantage,

or UCA.

Recap

Number one… four very effective ways to grow your business; get more customers increase the average

transactional value of each purchase

get your customers to buy from you more often

extend your customer’s buying lifetime

Recap

Number two… calculating the LPV… the Lifetime Profit Value of your customers

Number three… developing your UCA… your Unique Comparative Advantage