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How to Calculate What a Customer is Worth

May 29th, 2019 by

Read Time: Under 5min

Do you know your customers lifetime value (CLV)? If the answer is no, you are not alone. Let’s talks $$$. Here are three ways understanding your customer lifetime value will help you increase your company’s sales.

 

 

#1 Advertising

Knowing your customers’ lifetime value, you can gauge how your advertising campaigns are performing and make informed decisions.

#2 Upsell or Cross-sell

Most sales reps don’t want to come off “pushy” so they won’t even inform their customers about different products and services. How can you educate your customers about your other products or services you offer to generate more revenue?

#3 Return Customers

Past customers are more likely to buy from you again. What are you doing to stay connected with them? Simple email newsletters, reaching out via phone or targeted postcard campaigns to your customer list will increase return customers, which will increase your CLV.

Warning:

In this next section, I will be talking about numbers and equations which can induce flashbacks of high school math class, causing you to zone out. COME BACK!!! I promise this is simple.

 

What you will need (if you are not sure, then guess!)*

 

  1. Average new customer sale amount
  2. Average # of transactions per year
  3. Average # of years a customer buys from you

 

The equation to determine the lifetime value of a new customer (CLV):

The average sales volume for a new customer X # of times a year a customer purchases = customer value

Customer value X the average # of years your customers buy from you = Customer Lifetime Value (CLV)

Examples:

Gardener (example of a monthly service)

$90 x 12 months = $1,080

$1,080 x 5 years = $5,400

Gutter / Window Cleaning (example of a seasonal service)

$250 x 2x a year = $500

$500 x 7 years = $3,500

Contractor (example of a one-time service)

$5,000 x 1 = $5,000

Call us today! We are here to help create an advertising campaign based on your customers’ lifetime value and answer any questions you may have.

Pro Tip *

• Don’t worry about getting the data perfect. It’s better to guess and do it, rather than not to do it at all. We will have a Marketing Minute on the best ways to track your important information.

If you like this Marketing Minute, you will love next month’s tip, “How to Create a Marketing Budget.”

Expert Article in Duct Tape Marketing by Golden Mailer’s CEO

March 23rd, 2015 by

It’s Not Sexy… But It’s Time to Talk Conversion Rates

Tristan Barger, CEO, Golden Mailer

Don’t miss my full article on Duct Tape Marketing. Below is a sneak peak with links and clips from my guest article.

Guest blogger: Tristan Barger, March 17, 2015

Read the full article here: http://ducttapemarketingconsultant.com/determine-campaign-success/#

Not properly analyzing the success of every campaign might seem like an isolated issue. What you don’t realize is this lack of knowledge instigates several unintended (and seemingly unrelated) problems.

flat design icon set of analytics elements

Article clips:

“With no standard method to evaluate marketing campaigns business owners are left with no way to calculate investment costs, leads generated, appointments scheduled, deals closed or the final conversion rate of specific campaigns. You have no clue what’s working. These businesses don’t have the resources to track the necessary information or set-up these systems to complement their business and marketing model.

There is no solution that will work for every small business owner. But there is a solution that will work for your business, you just have to find it. Once you start looking into the number of qualified leads that come in and the close rate, you will get a better idea of what kind of CRM service you need. Do you simply need call tracking? Do you need web analytics and keyword tracking?

Marketing ROI, Golden Mailer

From personal experience, I will warn you that you might discover you have a bigger problem that needs to be addressed before anything else is done. If your close rate of qualified leads is at 15 percent, you need first to identify where in the process things start to “go off the rails,” and fix it. It could be an administration issue, poor communication with staff or a larger problem related to the kind of leads you are attracting.”

Read more on ducttapemarketing.com & the full article @ http://ducttapemarketingconsultant.com/determine-campaign-success/#

Sample of a simple Call Tracking service:

Call Tracking, Golden Mailer
 

Traditional Marketing Tactics Are Not Dead

March 10th, 2015 by

I can make a believer out of you … Some people need statistics to believe in something. Some require testimonials from people like them detailing the success of something. What do you need?

There has been resurgence in direct mail and it has created a higher demand. Everyone is online. This makes it difficult to really stand apart from you competitors on the Internet. Why do we believe that direct mail isn’t going away?

  1. Direct mail has the highest rate of success in new customer acquisition at 34 percent compared with other marketing channels. (Target Marketing)
  2. Forty percent of consumers say that they have tried a new business after receiving direct mail, and 70 percent have renewed relationships with clients that they had previously ceased. (Ballantine)
  3. Almost 75 percent of B2B marketers rate direct mail as very effective. (Earnest Agency)
  4. Four-fifths (79 percent) of consumers will act on direct mail immediately compared to only 45 percent who say they will deal with email straight away. (Direct Marketing Association)
  5. Half (50 percent) of U.S. consumers prefer direct mail to email. (Epsilon)
  • Golden Mailer, Direct Mail Stats
  • “I learned years ago that when it comes to marketing if you do nothing, you get nothing. It’s that simple. I have advertised with Golden Mailer for over 10 years. Unlike the results of an Internet search, I am not one of the dozens of similar businesses fighting for attention. My Golden Mailer ad will be one of its kind and never will there be more than a couple in my industry. Advertising is expensive but if one customer comes to my business through an ad and later refers two more the ad more than pays for itself. “ – Michael Primus, Attorney at Law

Why Local SMBs Need Call Tracking

February 27th, 2015 by

Call Tracking … The perfect marketing solution for SMBs

It is important to know what marketing and advertising tactics are working for your business. For most SMBs a simple call tracking number with the capability to record calls, track campaigns by select numbers, and provide an overall report of how many calls each campaign generated in comparison to other campaigns is everything they need.

Golden Mailer, Call Tracking Service

Attach a call tracking service to your campaign for FREE – Contact us today for more information about Golden Mailer’s service or referrals for a different call tracking platform that fits your business needs.

Golden Mailer’s Call Tracking Services…

You can see what campaigns are more effective in the summer vs. fall. You can listen to calls and gather insight to how each incoming call is being handled by sales, administration, or even a call fielding service. Generate reports to reflect only the data you want to see and avoid digging through daily stats that have no impact on your actual conversion rate.

You’re on the go, and your marketing should be, too.

That’s why our mobile app makes it easy to create, send, and track emails, everywhere you are.

Call Tracking, Golden Mailer

A call tracking services is the first step to motoring how well a campaign is doing and discovering how effective your staff is at fostering a simple inquiry up to the point of sale. What you will often discover is many leads are not tracked correctly or follow-up methods are not as strong as they should be.

But even with these often complicated software services, business owners still find that one of their major obstacles is determining what leads came from where?

Most SMBs that offer only a few primary products or services get overcharged for CRM and Business Solution software platforms that bill them for a long list of capabilities that they will never use.

Why do we recommend this method to most SMBs and local businesses? It’s incredibly affordable, you only pay for the information you want, and the reports give you a very clear overview of the information to best establish conversion rates and campaign success.

Champion Your Customers For Life!

January 15th, 2015 by

As a business owner you know who your biggest fans are… why not turn them into your customer champions too?

Customer champions can be your biggest fan via word of mouth driving in business, or a satisfied customer reviewing you on Yelp or Google Places. Finding the vocal clients that will champion your work and your company is important and something only you can do.

Golden Mailer, Customer Champion Infographic

Statistically, only 11% of sales reps ask for client testimonials or referrals, when 91% of clients say they would be willing to give referrals.

An article in Business.com by Yoav Vilner stated:

“You’ve definitely got what it takes to amaze your clients and turn them into your biggest fans. It’s just a matter of taking personal care in assessing each client differently and evaluating their wants and needs. Surpass their expectations by integrating some of these ideas into your business plan and you’ll be sure to see a growth in your fan club.”

By no means should your customer champions be a higher priority when it comes to the integrity of your work, time, or resources over other clients.

Every client should receive your very best work. You simply need to distinguish the difference between the ones that will champion for you and the ones that will forget your name the second you finish working with them. Some clients are easily impressed and more vocal than others and make great customers for life. Some clients like reviewing companies on the Internet, others don’t know where to start.

In the same article, Vilner states:

“If you’re willing to go above-and-beyond to satisfy and impress your clients, it will pay off. You’ll see a growth in repeat business, they’ll refer you to their friends and colleagues, and they will publicly proclaim your efforts, which will result in a boost to your reputation.”

From an operations standpoint this means you must keep on your team involved in the brand building process. To do this, management needs to make it a priority to build and utilize the relationships team members have with customers that might be overlooked.

Imagine if you capitalized on all those missed opportunities for customer champions that would be spreading your brand and referring your services as we speak.

Do Ghostwriters make you a Phony?

January 8th, 2015 by
By

Chelsea Irwin

I hate to break it to you, but most of what you’re reading online was written by the man behind the curtain…

If you really think that CEOs and VCs really have the time to sit down, with no interruptions, long enough to actually write some of the articles that they are posting online… you’re either naive, or have witnessed this first hand. I have witnessed this first hand, and work with CXOs who not only write their own content but enjoy writing it… I also know that this is rare.

(My hat is off to every executive that is as involved in the content creation process as the C-level team at Golden Mailer is.)

So what are you actually reading most of the time?

It starts with an idea. Usually something the “author” came up with in the shower or while his/her eyes were starting to glaze over at yet another employee’s birthday calibration. (I’m shocked the ice cream cake didn’t hold everyone’s interest for at least 15 minutes… especially those of us with lactose issues!?)

Then they get all ramped up about this idea. This is the fun part…? They want it published in Forbes.com! “There’s no reason it shouldn’t be, it’s an excellent idea that probably NO ONE has ever written about before.”

This is when the content writers (or “ghostwriters”) come in…

ghostwriters blog, Golden Mailer, Chelsea Irwin

First, you talk them off the ledge. Let’s start with a meeting. Hash out some talking points, possibly some analyst support, and then we can send you a mock up.

“FORBES!”

Yes, I understand. Let’s get what ever it is in your head down on paper first. ALWAYS RECORD THE BRIEFING CALLS!! These are high profile people and they read and meet with powerful connections multiple times a day. It’s almost like herding cats. First remind them of the topic. (By this point they have already thought of 10 more ideas – It should be a series!) You take what you can from the call; apply it to the topic at hand, and as a professional content writer, the rest is up to you.

You research and read and hopefully come across some of the material that sparked the initial interest in this topic. It’s your job to make “brilliant verbal diarrhea” sound great. You listen to the call over and over. Google some of his key phrases – BUT DON’T PLAGIARIZE! Attribute phrases if it fits. I have NEVER been afraid to attribute anything. It shows that I’m not plagiarizing and I did my research, or at least it shows that the author has.

This is a topic that could go on for pages. But I have two very important takeaways:

  1. As the writer, you have a responsibility to reflect the author’s opinions and point of view with facts and clear concepts.
  2. As the author, you have a responsibility to provide the writer with clear information. Not everything you have learned in the last 20-years. You must stay on track and stay focused for at least 15 minutes. You also have a responsibility to yourself to read EVERYTHING that is published with your name on it. Otherwise, you have no one to blame but yourself.

But no, I don’t think having a ghostwriter makes anyone a phony. I think most content writers would agree. They simply turn an idea into something you can share with other people.

After posting this discussion on LinkedIn

I was very surprised with how many people disagreed with me. When I really looked at the responses and why these people were disagreeing with me, I did find a common theme. “Writers” and “Journalist” – not just “Content Writers” – have a strong attachment to their words; it’s their intellectual property! The respondents that were fervent believers that putting your name on something you didn’t write is, “plagiarism, simple as that,” are the same writers that develop their own ideas and inspiration. Not to mention, many of them are book authors. I would agree that credit is due when someone ghostwrites a book.

I disagree that publishing a book about your life, which you didn’t necessarily write, but has your name listed as the author, makes you a liar. Many people make a living as Ghostwriters. They don’t have the name recognition to get a book deal, but they have the skills to help readers understand the author with words, the way the “subject” would want people to view them.

Maybe we can get into outsourcing your social media and engagement next time… That’s another can of worms!

Eliminate Obstacles and Reach the “Decision Makers”

December 30th, 2014 by

A recent study published by SalesStaff.com found that 52% of in-house B2B sales representatives considered “Reaching Decision Makers” as their biggest challenge. What this survey failed to ask is whom they consider to be the “Decision Makers”? The most difficult part of B2B sales is to identify the person within the organization most influential when it comes to budgetary decisions – That’s the person you want to impress and build your initial relationship with. I call this person “The Gatekeeper”.

According to SalesStaff.com, a few other areas in-house sales reps struggle with are:

I come from a sales background, my focus is also on new business prospecting and client retention. These are all different forms of B2B sales. I increased monthly budgets, sold additional social media packages, and convinced the company to resign quarterly retainers regularly. Many of these sales were made without so much as a direct conversation with the CEO and myself.

These “Decision Makers” that every sales executives and associates so desperately try to get on the phone don’t take cold calls; a CEO will rarely take a cold call. There is that small percentage… and sometimes we just get lucky, but 90% of the people you want to get in front of have a “Gatekeeper”. They trust this person to not let any calls through, schedule any meetings, or spend any money on anything they haven’t been convinced is worth it. That’s why convincing “The Gatekeeper” is the key to getting the meetings and the sells you want.

“The Gatekeeper” will always tell you their boss isn’t available. That’s when to pitch them. If they buy your pitch, they will bring it to management. Don’t simply leave a message and hope the CEO will call you back. The people that screen my phone calls, emails, and scheduling meetings are employees I trust and opinions I take seriously. If they tell me something is worth trying, I’m often too busy to hear the details, but I trust them, so most of the time I will just give them the green light.

Most CEOs send marketing material to an assistant, department manager, or even an intern with a brief message… “Can you look into this? Do you think it’s worth doing?” Business owners just don’t have time to look into every single pitch that comes their way. But if it’s a really good pitch, they just might look into it further.

You shouldn’t be expecting a high success rate when you’re pitching business owners over the phone while making cold calls. If you have a long standing relationship, that’s a different story, but anything less than that, you can expect a lot of:

  1. I’m sorry, he/she isn’t in right now, can I take a message?
  2. On vacation for the week, can I take a message?
  3. What is this regarding and I will make sure they return your call.
  4. In a meeting… stepped out for lunch… unavailable…
  5. Then, there’s just the HANG UP (which is always fun!)

After 10 years of working on both sides I can say one thing is certain, if you find “The Gatekeeper”, the person the “Decision Maker” trusts and listens to, you will get a lot further than assuming there’s nothing they can do.

Ask the person on the other end if they are up-to-speed on the company’s current marketing efforts. If they aren’t just an answering service, send them the material – It’s better than leaving a message that will rarely even make it to the target.

How Can My Business Get Penalized On Facebook?

November 18th, 2014 by

Is Facebook the best fit for your business & how to promote your product through blogs & non-promotional posts?

While the “rules” for promotional B2B activity on Facebook change more frequently than the Yahoo! logo design, Google algorithms, iPhones, or American’s hip sizes around the holidays… It is important to keep up with these changes to protect your company’s social media efforts on Facebook from being penalized.

So, how can my business get penalized on Facebook? Facebook recently announced that the networking giant can penalize post boosts that are too “promotional” as of last week. It’s not always clear as to what is “too promotional” but the decision was based on a survey determining that most Facebook users prefer to see stories and friend updates in their newsfeed rather than what Facebook deems product pushing.

According to www.SocialMediopolis.com, Facebook promotional regulations can best be defined as any of the following:

  • – Posts that solely push people to buy a product or install an app
  • – Posts that push people to enter promotions and sweepstakes with no real context
  • – Posts that reuse the exact same content from ads

An excellent article on Jon Loomer’s blog used a great example of what Facebook will consider too promotional:

Golden Mailer Blog
Photo Attribution: JonLoomer.com

After reading what they determine is “promotional” it’s clear that businesses with Facebook groups or pages should stick to boosting articles of interest that lead the reader back to your website or Facebook page. This is just another reason why frequent blogging and content creation is such an important aspect of your branding. A recent survey published by www.hubspot.com found that blogging is a vital part of lead generation.

How can blogging benefit sales leads and keep your company from being penalized on Facebook?

By pushing your blogs that are educational and timely to your readers (this does not include transparent product or service pitches in the form of a blog), you can reach your social following and also increase engagement. Below are some recent stats collected from www.hubspot.com.

  1. Companies that blog have 97% more inbound leads than companies that don’t
  2. 92% of companies who blogged multiple times a day acquired a customer through their blog
  3. 81% of marketers rated their blog as useful or better
  4. 57% of US online adults read blogs
  5. 97% more inbound links for companies that blog
  6. Two-thirds of blog readers say a brand mention or promotion within the context of the blog influences their purchasing decision.
  7. 80% of adults say bloggers “can be very or somewhat influential in shaping product or service purchasing decisions.”
  8. Companies with more than 200 blog articles have 5X the leads than those with 10 or fewer.
Golden Mailer Blog

Facebook also announced a few weeks ago that sweepstakes and contests would also penalize a page. These rules are much more complex and something businesses should be constantly aware of!

Is Facebook really important for businesses?

In short, yes. But that is something that every business must weigh against resources and rewards. Below are some facts recently printed in a report from www.SalesStaff.com that might help business owners determine if Facebook is really the best place for their financial and time resources…

Golden Mailer Blog, SalesStaff.com pic
Graphic Attribution: SalesStaff.com

Mark Zuckerberg, the social network’s founder and CEO, said earlier this month that while a typical Facebook user could potentially view 1,500 updates a day, he sees only about 100. That means businesses that want to appear in that feed need to produce “really good content that’s going to be compelling to your customers.”

Part 3: SEO’s Impact On Customers & Online Reviews

November 14th, 2014 by

Part three of this five part blog series explains the essential need for business owners to understand the increasing influence SEO has on how customers receive and perceive online reviews on sites like Yelp & Angie’s List.

Even if you’re not ready to be on the Internet, your customers aren’t always on your timetable. As you can see below, almost 100% of Internet users read reviews and they affect almost all of their decisions.

Golden Mailer, SEO and Online Review Blog

According to a Channel Advisor survey, ‘Through the Eyes of the Consumer’:

  1. 92% of US Internet users read online reviews
  2. 46% of consumers were influenced to purchase based on reviews
  3. 43% of consumers were deterred from purchasing based on reviews
  4. 3% of consumers reported their decision was unaffected by reviews

Understanding the impact SEO has on online reviews & ratings…

A huge part of properly managing SEO for your online pictures, profiles, blogs, and websites is linking them all to your company. Every directory submission, description, and summary you issue are vital keys to your company branding. Consumers are regularly browsing through sites like Google Places where they will find photos, links, and bios of your company… and your competitors. If you don’t properly leverage SEO for all the content and graphics that you post online, your company will get lost in cyber space while your local competition is showing up in every search and on every site.

…Especially the impact online reviews have on customers.

All these graphics and summaries get linked to various review sites. Local customers rely heavily on these sites to provide them with the best possible information before hiring a company. While you can ask your customers to go online and provide a review for your company, typically the only customers that have the motivation to take time out of their day and review your products or services are the ones that feel you went above and beyond, or the very opposite, the customers feeling that they got burned.

There are multiple ways to look at a negative review:

Although it can be an emotional hit, bad reviews should be handled with care; they should never be responded to rashly or emotionally. Chances are the bad review is about a particular experience, not you as a person.

Look at any negative reviews as opportunities to showcase your company’s excellent customer service, and dedication to quality. Negative reviews can be good PR if you handle them tactfully. These complaints can also serve as a guide for things your company can improve on, because hey, nobody’s perfect.

How to respond to a review?

When responding to a review the best thing to do is to engage the customer. It is important that your tone is not defensive or confrontational; rather it should be one of concern. Be nice, be courteous, and genuinely try to help them. Know that it is incredibly hard to win an argument with a berated customer. Do not try; it will most likely reflect poorly on you and your company. Take the higher ground. Try to understand what went wrong and make every effort you can to put the situation right.

You can read more from the full blog here: “How to Handle A Bad Review

Why are reviews SO important?

One of the first places potentials customers look when searching for local businesses are review sites. Not to mention sites like Yelp and Angie’s List are so well optimized that they rank incredibly high in search engine results. Every review is important. If you can tell a customer isn’t satisfied before the job is finished, take the extra time and money to fix it before they cost you dozens of potential customers with a negative review.

A recent blog on Bnetworking.info stated the following: “Reviews – First of all, do not attempt to make reviews. Internet users will immediately know that they are not true. Reviews are really important in local citations. They are very similar to site linking since they give search engines as well as citation sites the notion that your business is just as excellent as you state it is. You can even find citation sites that will not list you in generic searches if you do not have a favorable review. Thus, once you are done with your profile, spend time to build reviews.”

Local residents search for a business that is in their community, affordable, and trustworthy.

This is why online reviews are so important. You can’t be afraid of the criticisms people leave. You should face these reviews head-on. Never ask a customer to remove a review. And most importantly, you must understand that even if you’re not ready to be on the Internet, customers aren’t always on your timetable.

Don’t hide from bad reviews…

The worst thing is being afraid to deal with it. I’ve worked with some business owners and they didn’t even know that they had dozens of reviews on Yelp. This is customer engagement at it’s best. It’s raw and real. Embrace the good and the bad because that’s what makes you human and that’s how customers trust you.

About this series…

This five part blog series takes a deep look into highly competitive industry landscapes and tips to successfully compete as a locally owned business.

Part 2: Money-Back Guarantees… Is It A Ploy?

November 12th, 2014 by

Part two of this five part blog series provides a deep look into the relationships businesses have with other businesses and how to trust business service money-back guarantees.

Money-Back Guarantees Blog, Golden Mailer Money-Back Guarantees Blog, Golden Mailer

As a small business owner, it is important to understand the level of trust you are investing into another business when working together, especially when it comes to money-back guarantees. When partnering with other businesses or vendors in regards to advertising, branding, product quality, etc., be sure to have a mutual understanding of what exactly you are being promised and vice versa.

As money-back guarantees often come with a lot of loopholes, reading the fine print is key, and customer satisfaction should always be the first priority when deciding whom to partner with.

Before You Trust a Money-back Guarantee

Prior to making your decision about working with another business for their product or service, be sure to check, double check, and triple check the both of you are on the same page. Here are some questions to consider asking regarding your money-back guarantee before making anything official.

  1. Can I get a copy of the terms in print?
  2. How long before I get my refund?
  3. Will all additional expenses be included in the money-back guarantee?
  4. What if I’m not satisfied?
  5. How do I go about requesting for a refund?

Be sure to get the name of the person you dealt with when making a deal involving a money-back guarantee. It’s O.K. to ask repeatedly for clarification. Consider your potential losses (time and money-wise) if you are unsatisfied. Will another business’ promise to you hurt your business if it backfires? Always be fully aware of the money-back guarantee before you make any decision final.

Where to Focus Your Guarantee Promises

As a small business owner, you will most likely experience having to make up a money-back guarantee policy of your own for a product or service. The most important guarantee you can offer in your policy is customer satisfaction. Whether you promise to increase online search rankings through SEO services or drive more customers to the business through appropriate marketing practices, you must follow through on your contract based on what the customer claims. Money-back guarantees should be focused on products or services that a business invests in to help with marketing, advertising, branding, design, packaging, delivery, or any service that promises to drive more business.

Below is a review posted on Yelp from a business owner unsatisfied with a logo design and storefront signage company. Read the review and take note of how upset the customer is; the customer paints a bad image of the company resulting in the customer losing a client and the client losing money.

“Company X advertised in writing and verbally a money-back guarantee if I wasn’t satisfied with the design and decided not to use it. The manager himself promised me a full and SPEEDY refund if I was unsatisfied but it’s been over four months and I still haven’t seen a single dime, now he won’t even call me back. Not only did they waste my time, take my money, and lie to me, but also they are STILL advertising a money-back guarantee policy. They can’t be trusted and don’t honor their promise to customer satisfaction. I would have been better off tossing my money in the trash, at least it would have saved me time.” *Business name will remain anonymous

Understanding the Fine Print

Money-back guarantees are often littered with loopholes to cheat customers out of money. Sometimes a company will refund the service charge, but not the initial set-up fee. Sometimes a company might refund the labor fee, but not the cost of materials. A company may sometimes even refund the materials, and not the cost of the labor. Loopholes in money-back guarantees can range from anything regarding how long you have to act before your “guarantee” period is over to how much of the money you will actually be getting back. Ultimately, it is your job as a small business owner to be aware of such loopholes and read the fine print when partnering with another business in order to avoid a loss for your business, or even your customers in the future.

About this series…

This five part blog series takes a deep look into highly competitive industry landscapes and tips to successfully compete as a locally owned business.

Part 1: The REAL Threats Local Businesses Will Face in 2015

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