Doing Business in Hard Doing Business in Hard TimesTimes

Secrets of Multiplying Your Income Secrets of Multiplying Your Income From Existing CustomersFrom Existing Customers

Presented By: Denise Hester, M & M of NC 919-680-2878Presented By: Denise Hester, M & M of NC 919-680-2878

What you wil l get from What you wil l get from this seminarthis seminar A new way of looking at your businessA new way of looking at your business

Calculating the value of your existing Calculating the value of your existing customerscustomers

Multiplying the value of your existing Multiplying the value of your existing customers for greater profitcustomers for greater profit

What else you wil l get What else you wil l get from this seminar from this seminar

Nothing happens unti l Nothing happens unti l something sellssomething sells We are always engaged in salesWe are always engaged in sales Easier to sell to current customersEasier to sell to current customers New customers sometimes more New customers sometimes more

expensiveexpensive New customers sometimes more New customers sometimes more

demanding & unpredicatbledemanding & unpredicatble

What is marketing?What is marketing?

The The relationshiprelationship that allows you to that allows you to attract and maintain sufficient attract and maintain sufficient customers who value your product or customers who value your product or service enough so you can profit from service enough so you can profit from that that relationshiprelationship

What is marketing’s role What is marketing’s role in business?in business? Establishes your competitive Establishes your competitive

advantage in the marketplaceadvantage in the marketplace Defines your unique difference that Defines your unique difference that

customers are willing to pay forcustomers are willing to pay for What makes customers choose your What makes customers choose your

business over a competitorbusiness over a competitor

Remember ROGERRemember ROGER

RR Rank customers by their value to your business (Market Rank customers by their value to your business (Market Segmentation)Segmentation)

OO Obtain info on what your customers value and are willingObtain info on what your customers value and are willingto pay for (Market Research)to pay for (Market Research)

GG Generate value for each market segment (5 P’s)Generate value for each market segment (5 P’s)

EE Evaluate the resultsEvaluate the results

RR Refine and repeat based on feedback from customers Refine and repeat based on feedback from customers and your bottom lineand your bottom line

RankRank customers by their customers by their value to your businessvalue to your business RecencyRecency How recent was last sale How recent was last sale

FrequencyFrequency How often do they buyHow often do they buy AmountAmount How much do they spendHow much do they spend

List customers in each List customers in each segmentsegment A ListA List All Stars (Visit often and spend the most) All Stars (Visit often and spend the most)

B ListB List Better-Than-Most (Visit less often and spend less)Better-Than-Most (Visit less often and spend less)

C ListC List Clandestine (Visit once in a while and spend little)Clandestine (Visit once in a while and spend little)

D ListD List Defectors (Visit every once in a blue moon)Defectors (Visit every once in a blue moon)

E ListE List Extinct (No longer exist as customers)Extinct (No longer exist as customers)

Another Way to Rank Another Way to Rank Your CustomersYour Customers

Make a l ist of customers Make a l ist of customers in each segmentin each segment A ListA List B ListB List C ListC List D ListD List E ListE List

Observe 80/20 Rule at workObserve 80/20 Rule at work during this exerciseduring this exercise

ObtainObtain info on what info on what customers value by customers value by segmentsegment A ListA List B ListB List C ListC List D ListD List E ListE List

GenerateGenerate buzz through buzz through marketing process (5 marketing process (5 P’s)P’s) The 5 P’s define your capabilities that give The 5 P’s define your capabilities that give

you the competitive advantage in the you the competitive advantage in the marketplacemarketplace

Proposition (Value Statement)Proposition (Value Statement) PlacePlace PeoplePeople PricePrice ProcessProcess

EvaluateEvaluate Results Results Experiment with value proposition until you Experiment with value proposition until you

deliver what customers wantdeliver what customers want Alter the 5 P’s as required by your marketAlter the 5 P’s as required by your market Use contact management systemUse contact management system1.1. Your memory (not recommended)Your memory (not recommended)2.2. Index cardsIndex cards3.3. TelephoneTelephone4.4. Computer software Computer software (Word processors, spreadsheets, point-of-sale)(Word processors, spreadsheets, point-of-sale)

5.5. Social media (Facebook, Twitter)Social media (Facebook, Twitter)

RepeatRepeat

Refine the value proposition to each Refine the value proposition to each segment based on measurable segment based on measurable feedbackfeedback

Repeat all the previous steps over Repeat all the previous steps over again until you see a measurable again until you see a measurable difference in your bottom line.difference in your bottom line.

Calculating the Value of Calculating the Value of Customers to Your Customers to Your BusinessBusiness

Secret #1: Exceed Secret #1: Exceed Expectations for A & B Expectations for A & B CustomersCustomers Lavish attention on these customers Lavish attention on these customers

because they because they AREARE your business your business from a cash flow perspectivefrom a cash flow perspective

You can only depend on A’s & B’s for You can only depend on A’s & B’s for cash flow cash flow

Keep them very happyKeep them very happy

Secret #2: Migrate C Secret #2: Migrate C customers into A’s & B’scustomers into A’s & B’s Intense market research to find what it Intense market research to find what it

would take to move C’s up the loyalty would take to move C’s up the loyalty ladder to becoming an A or Bladder to becoming an A or B

Understand why they are not visiting Understand why they are not visiting moremore

Enhance the relationship to provide Enhance the relationship to provide incentive for more visits & more incentive for more visits & more spendingspending

Secret #3: Identify How Your Secret #3: Identify How Your Customers Want to FeelCustomers Want to Feel

Identify where your customers “live” Identify where your customers “live” emotionallyemotionally

Determine their “state of being”Determine their “state of being” Connect with their wants & needs Connect with their wants & needs

Secret #4: Create the Secret #4: Create the environment customers wantenvironment customers want

Some possible environments are:Some possible environments are: Stress ReliefStress Relief SafetySafety SecuritySecurity HopeHope Ease of UseEase of Use DependabilityDependability StatusStatus

SummarySummary

Business is all about relationshipsBusiness is all about relationships

Find out where you stand with Find out where you stand with ROGERROGER

Build on existing base of customers Build on existing base of customers you already know and who already you already know and who already patronize your businesspatronize your business