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.”

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
 
By Chelsea Irwin

Over the last year Golden Mailer has been blessed to partner with the HOPE program for local foster and homeless children in the East Bay

Golden Mailer had the unique experience this year to sponsor children from the local Mount Diablo Unified School District’s HOPE program. We have blogged in the past about the HOPE program, but here is a quick explanation of what they are all about: Last school year, the MDUSD HOPE program served 511 homeless children, grades K-12 and 151 foster youth. These are children living in shelters, cars, motels, and staying temporarily with friends in what they call “doubled up” and “tripled up” living arrangements. Most of us don’t see this or believe it is happening in places like Pleasant Hill, Walnut Creek, Lafayette, or Clayton, but it is.

As a local and family owned business, the employees at Golden Mailer agreed that volunteering would be best served in the local community…

Children in Classroom, HOPE, Golden Mailer

There is nothing more important to the future of your community than providing inspiration and support to the young adults who will be running the local businesses, enforcing the law, operating on your loved ones and eventually raising the generation to follow. This is why we came together as a company to pull together resources and help provide holiday cheer to those that need it the most.

It doesn’t feel like there are many children living in homeless or poverty stricken situations in the East Bay, but there are. When we use the word “many” we simply mean that even one child is too many. My hat is off to everyone who did something this holiday season to help make a stranger’s holiday a little brighter. Dedication to Benevolence Programs is proven to give employees a more positive view of the company they work for and speak with a higher level of respect outside of work to friends, family and associates about management and company culture.

Working with the dedicated members of HOPE shows you the unfortunate truth… THIS NEVER ENDS.

These children need food year around, school supplies, clothing, and resources available to show them that they haven’t been left behind or forgotten. Simply because the holidays are over doesn’t mean you should forget about the less fortunate members of your local community. A few months ago we wrote about different ways you can volunteer or simply donate money to local organizations all year long. There are countless ways to get involved, read Golden Mailer’s 2015 Holiday Volunteering Blog for more information.

Why start company Benevolence Programs?

It’s so easy to get wrapped up in daily routines and we quickly forget about the children sleeping in cars or shelters in the middle of February. This was one of the many great experiences that the Golden Mailer team has started to make a tradition as a dedicated partner with the local HOPE program. We encourage you to start your own tradition and give what you can to your local community all year long.

“It Takes A Village”

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.

How to build client trust and still set boundaries…

I was reading through a discussion posted by Paul Castain on LinkedIn about sales reps remaining “on call” after hours. The responses all seemed to have a single underlying theme. It wasn’t stated out right in some of the responses, but it was at the foundation of their point. You need to set boundaries but still make sure your clients trust that they are a priority.

This is never as simple as it seems. Some respondents went as far as to say that they pick up EVERY single call they get – regardless of the day or time.

On Call Photo, Golden Mailer, Blog

This made me laugh a little because, well, that simply isn’t possible. You can’t take every call – Even when it’s the middle of the workday. You might be on a job site, talking to another customer, or installing a garage door. Of course, depending on your industry, your response time will vary… As will your customer’s needs.

For local businesses owners it’s hard to let it go to voice mail…

This is very true. For many businesses that invest a large portion of their budget into some form of advertising, missing a single call could cost them their entire conversion rate (again, depending on what your median sales point is). So they are left to push against the ocean. A point well made by Lon Lohmiller when he stated, “experience has proven that a work/life balance is critical for optimal performance at the times when the rep is “on”, which implies that there has to be “off” time that in the end I believe should be self imposed.”

Why can’t it be as simple as the “hours of operation” listed on YP.com, Google Places, or Yelp?

Once again, it’s just not that simple. Your customer might have the same work hours that you have listed on your website. So do you play phone tag for the rest of your life? No, most business owners that are out in the field for the majority of the day have what they call a “bat phone” – It’s a cell phone that office calls get forwarded to when they aren’t in the office.

Evaluate your target rich demographic and determine when they are most likely to call and try to make yourself available at those times. Some business owners do need to tweak their hours so customers can reach them on the weekends or evenings.

Set boundaries from the beginning!

If an existing customer calls you at an inappropriate time, don’t pick up, listen to the voice mail, and if it is in fact urgent, call them back immediately. If it can wait a day, call them back within 24 hours. Otherwise, you are setting a precedent that any problem is an emergency and will be dealt with immediately. This quickly becomes a habit and before you know it you’re camping with your family and the “bat phone” is attached to your hip. You get burnt out and can’t perform at an optimal level.

On Call Photo, Golden Mailer, Blog

Even the type A personality working seven days a week will get burnt out or over commit their time and resources to customers. It doesn’t matter how much you LOVE YOUR JOB, you still need to take a step back and focus on something else. Tunnel vision and the compulsions to make every single customer your first priority and your best friend will eventually crash and burn. Every client should be a priority. Make sure the squeaky wheel doesn’t get all your grease, and most importantly, be a dependable and reliable vendor that every client can trust.

“If you want them off the phone so bad, why don’t you just hang up?” – Boiler Room, Movie (2000)

I would like to take a trip back to Ben Affleck’s short, yet unforgettable, role in the 2000 film Boiler Room. It doesn’t matter if it’s B2B, B2C, wholesale, retail or just dreams that you are pitching…

“There is no such thing as a no sale call. A sale is made on every call you make. Either you sell the client some stock or he sells you a reason he can’t. Either way a sale is made, the only question is who is gonna close? You or him? Now be relentless, that’s it, I’m done.” – Boiler Room boiler room, golden Mailer, Always Be Closing, Tristan Barger

We would NEVER operate under such crewed methods, language or overall goals, but he has a point. If you sell tires, every time the phone rings, there’s potential to sell a tire.

According to www.JustSell.com‘s negotiation guide, during negotiation…

  1. Use open-ended questions to confirm your understanding of their needs
  2. State your understanding of how the prospect or customer will benefit from your product or service – confirm this is accurate by asking
  3. Be prepared for tactical responses from prospects and customers – whether it’s the flinch following your price quote or silence – don’t react and instead respond with more questions
  4. Listen
  5. Don’t rush to fill pauses – become comfortable with moments of silence
  6. Be prepared to change the value proposition to support price concessions–support your price integrity by adjusting the overall value (e.g., change delivery times, follow-up schedules, service period, etc.)
  7. Try to identify agreement on small items to help develop positive momentum – summarize these agreements periodically
  8. Take notes to demonstrate you’re commitment to the negotiation and to help you find opportunities to summarize the smaller agreements verbally with the prospect/ customer

Always be cautious of your client’s time, space and boundaries. Don’t over step. Give them room to breath and never force them into something you don’t believe in yourself.

Most importantly… Never end a sales call or meeting with:

“Fine. I’m gonna take you off my list of successful people today.” – Boiler Room

If you haven’t seen the film, it’s not for children; however, it begins with a great quote from the lead character:

“I read this article awhile back, that said that Microsoft employs more millionaire secretary’s that any other company in the world. They took stock options over Christmas bonuses. It was a good move. I remember there was this picture, of one of the groundskeepers next to his Ferrari. Blew my mind. You see *stuff* like that, and it just plants seeds, makes you think it’s possible, even easy. And then you turn on the TV, and there’s just more of it. The $87 Million lottery winner, that kid actor that just made 20 million on his last movie, that Internet stock that shot through the roof, you could have made millions if you had just gotten in early, and that’s exactly what I wanted to do: get in. I didn’t want to be an innovator any more, I just wanted to make the quick and easy buck, I just wanted in. Nobody wants to work for it anymore. There’s no honor in taking that after school job at Mickey Dee’s, honor’s in the dollar, kid. So I went another way; I became a stockbroker.” – Boiler Room

This is when Sales Negotiating comes in…

You need to create a sales that benefits both parties! Everyone leaves HAPPPY!

The realization that it’s real people, with real lives, and real families that you are selling to, that’s the moment you become a sales person. The small businesses, the home loans, the company that employees your neighbor… It’s everywhere and there IS NO EASY WAY in. It takes work, time, trust, experience, knowledge, and most importantly, the ability to fall and get right back up and pick up the phone or serve the next customer. Simply knowing that you are selling them something that will benefit everyone is the only talking point you will need.

“Its strange to think how that knock changed everything, everything, hey don’t get me wrong here, I don’t believe in fate, I believe in odds.” – Boiler Room

Developing a Long Term and Trusted Relationship with your Advertising Firm Takes Time and Proof of Success

Partnering with an advertising and marketing team that understands your customers is one of the most important assets to a successful campaign.

Locally targeted Advertising, Golden Mailer

Work with an experienced professional

To achieve the expected level of success and ROI you need to work with someone willing to dedicate personal time and devotion to your company’s success. You should expect an experienced direct point of contact that will help you determine the best places to allocate your budget based on your customer demographics.

“After only 4 months of advertising with Golden Mailer coupons our customer increase was so large that we are adding a second fence crew to cater to zones bringing in such high volume results. We were amazed by the immediate increase in customer traffic and excited to expand to more zones, grow our company, and continue working with the team at Golden Mailer.” G & G Deck and Fence, Landscaping

“My personal point of contact is fantastic! He is responsive and proactive. He has a sense of urgency and always updates me when new mailers are going out. He has patience with my lack of response at times and always follows up with me. My experience has been extremely positive.” – Vitality Bowls & Utopia Tanning and Spa, Consumer Services

Make them earn your trust

Every advertising campaign should have a goal. In most cases it’s to bring more customers in the door. If your advertising partner can’t show you that the tactics they are using work, it’s time to move on.

“Golden Mailer has consistently brought business through my restaurant doors since my very first campaign with them. Customers bring in the coupons on a daily basis, both at lunch and dinner. This is the reason I have been using Golden Mailer’s services monthly, for over a year now!” – Kana Sushi, Restaurant

Making the process easy for you

In addition to the design, mailing, and demographic selection, all Golden Coupons are posted online and available to consumers searching for discounts in their area via the Internet. The campaign process should not be stressful, it should be exciting and pain free.

“The entire experience has been very smooth and they cater to my needs as a local business owner. For the cost of Golden Mailer’s advertising services, it is a no brainer. I have retained so many long time customers from Golden Mailer’s print advertising mailers” – Vitality Bowls & Utopia Tanning and Spa, Consumer Services

“My experience has been absolutely delightful working with the Golden Mailer team. They saw that my doors were opening soon and stopped in while I was doing some finishing touches to the restaurant. This was over a year ago and I have been using Golden Coupons ever since. They operate in a professional manner, always stay on top of my marketing needs and readily available should I have any requests!” – Kana Sushi, Restaurant

Almost 68% of people who live in Walnut Creek work for privately owned companies, and of those companies, more than 30% are considered small to medium sized locally owned businesses. On average, only 18% of small businesses are using social media as a marketing tool to reach out and engage with current and potential customers. A recent survey revealed that more than 60% of business owners don’t think investing in a social media marketing strategy will benefit their brand or financial success.

Social Media Opportunities for East Bay SEO Small Businesses

Business owners disregarding social media as a waste of time will continue to alienate potential customers and slowly lose current customers. Even your loyal customers will gravitate toward similar (and competitive) local businesses that are actively engaging with the community online and creating brand recognition that digital consumers recognize and trust.

Digital media is how most consumers are attaining information. Bay Area social media has outgrown the days where social platforms like Twitter, Facebook, and YouTube simply helped people keep in touch with college friends and share baby pictures.

Why are Bay Area social media marketing strategies such a vital vehicle to engage with customers? There are more than 325 million mobile devices in the United States alone. Consumers use their phones to find the best deals on products and services close to them. Cars even have built-in technology that tells the driver where the cheapest gas station is within a 5-mile radius. Consumers can literally ask their mobile phone questions about where to eat if they’re looking for a restaurant close by. The voice on the other end, commonly known as “Siri”, quickly searches the web and provides a list of the closest sushi restaurants or what Mexican restaurants are still serving happy hour prices.

If you aren’t implementing an Internet strategy, you aren’t coming up in these searches and you’re losing a lot of costumers simply because they don’t know you’re there. Mobile devices graduated from simple communication conveniences to human appendages. This wasn’t a slow evolution, we blinked and the digital age surrounded us… America’s primary source for information and sometimes even an addiction. If your advertising efforts with print coupons, mailers, magazines, or newspapers does not include online placement of those coupons you are wasting valuable time and money.

The same survey, sponsored by Network Solutions, provided the below feedback from the 18% of small business actively using social media to engage with consumers and increase brand awareness. Here are some stats about what social media can do for Bay Area businesses, especially if you have competition you’re losing business to.

  1. 70% indicated that their social media presence met or exceeded their expectations
  2. 61% stated that social media brought them new customers
  3. 52% found it developed a higher awareness for their organization with their target market
  4. 46% stated that it helped them stay engaged with current customers
  5. Only 6% reported that negative comments by dissatisfied customers hurt the image of their company more than social media helped it (Keep your eye out for our next blog that will discuss reputation management and why monitoring your online brand is so vital – regardless of your hesitation to actively push your business online, you are likely still being mentioned in reviews and rankings.)
  6. 50% found that it takes up more time than they expected
  7. 75% reported that they broke even or made money using social media, in spite of the time required to actively participate
  8. 84% believe that they anticipate that they will either break even or make money with social media within the next year