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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