3 Ways to Get Lots of New Customers Who Spend More Over Their Lifetime
Are you a marketer with a new product or service? Or, maybe you have a product or service which is already in the market, but need a flock of new customers to bring in extra income for you? In both cases, you may like to think the best way to make more income from your sales efforts is by calculating the cost of making your product or service available to the consumer and then adding a margin of profit to this cost.
So, very quickly, you may do your calculations as follows: Cost of Production/Purchase of the Item you wish to sell ($3) + Cost of Promoting the Product/Service to the consumer ($1) + Cost of Delivery to the Customer ($1) + a Margin of Profit for yourself ($2)=Total Price paid by Customer ($7).
More often than not, this does not translate to more income for you.
For your first-time customers, the price may be too high especially since they have never tried your product or service and may not have enough proof of assurance that the product or service will deliver the results they expect.
However, with the following three methods, you can do away with your profit and promotional costs and still get more than your share of customers who keep coming back to buy more.
Yes, you can eat your cake and still have it.
1) One way is to reduce your price for first-time customers.
Let's assume in the above example, you decide to forego your margin of $2.
It means you do not make any profit on that first sale to your new customer.
But neither do you make a loss, because what the customer pays at the end of the day ($5) will be enough to pay off the costs of production/purchase, promotion and delivery ($5).
This is called The Break-Even Point.
At the point of this $5, you have made no loss or gain, because your costs or expenses are equal to your revenue (you have spent $5 to put the product together, promote and deliver it to the consumer and it's exactly this same $5 that you get back from the consumer.
) You have therefore "broken even".
Now, let's assume I was this first-time customer.
I knew your product or service was worth $7 but you sold it to me for $5, because you wanted me to try it and see if it delivered on the results I expected.
After using the product or service, I found it was great.
Surely, I would always come back for more, but then I would be more than ready to pay $7, or even more.
You have a repeat customer who is ready to spend even more on subsequent purchases.
Me.
By removing your profit margin and reducing price for new customers or on new products and services, you are removing barriers to first-time relationships.
Then, you can earn extra income at the backend.
2) Here is another way to get lots of customers who keep coming back.
Do you know each customer you have made has a potential of bringing in tens and hundreds of other customers? Sure, you can cut down on your promotional costs through what is known as Referrals.
Every time you deal with satisfied customers, ask to meet or communicate with their friends, or anyone important to them, about your products or services.
You could even make it a bit formal, like getting such old time customers to enter the details of other people they want to refer in a document.
Promise to give a freebie to any customer who is ready to refer others to you.
Also, let the people they refer to you get a sample or demo of your product or service for free, so they don't only see you as somebody they can trust, but also as an expert or marketer of genuine products or services.
By doing this, you will not only win them over, but you will have succeeded in making them come back to you and even getting them to refer their friends to you.
This is another way to earn extra income from your marketing efforts over and over again, all at little or no promotional cost, as you have spent little or no money to promote to new customers referred to you.
3) Yet another way to kill cost and bring in loads of customers is to ask yourself if there is any other marketer or company out there who presently has a strong relationship with customers to whom you might offer to sell a product or service that is related to, but does not compete with what they sell.
Make contact with such marketers or companies, ask them to introduce your product or service to their customers and give them lots of information on what you sell.
Again, give such marketers or companies testimonials which attest to the quality of your product or service.
However, don't forget to offer something in return: a percentage of the income you earn from each sale to any of their customers or an arrangement to help pay part of their cost of promotion will do the trick, among others.
At the end of the day, you will be dealing with new customers who are ready to buy all year round.
So, very quickly, you may do your calculations as follows: Cost of Production/Purchase of the Item you wish to sell ($3) + Cost of Promoting the Product/Service to the consumer ($1) + Cost of Delivery to the Customer ($1) + a Margin of Profit for yourself ($2)=Total Price paid by Customer ($7).
More often than not, this does not translate to more income for you.
For your first-time customers, the price may be too high especially since they have never tried your product or service and may not have enough proof of assurance that the product or service will deliver the results they expect.
However, with the following three methods, you can do away with your profit and promotional costs and still get more than your share of customers who keep coming back to buy more.
Yes, you can eat your cake and still have it.
1) One way is to reduce your price for first-time customers.
Let's assume in the above example, you decide to forego your margin of $2.
It means you do not make any profit on that first sale to your new customer.
But neither do you make a loss, because what the customer pays at the end of the day ($5) will be enough to pay off the costs of production/purchase, promotion and delivery ($5).
This is called The Break-Even Point.
At the point of this $5, you have made no loss or gain, because your costs or expenses are equal to your revenue (you have spent $5 to put the product together, promote and deliver it to the consumer and it's exactly this same $5 that you get back from the consumer.
) You have therefore "broken even".
Now, let's assume I was this first-time customer.
I knew your product or service was worth $7 but you sold it to me for $5, because you wanted me to try it and see if it delivered on the results I expected.
After using the product or service, I found it was great.
Surely, I would always come back for more, but then I would be more than ready to pay $7, or even more.
You have a repeat customer who is ready to spend even more on subsequent purchases.
Me.
By removing your profit margin and reducing price for new customers or on new products and services, you are removing barriers to first-time relationships.
Then, you can earn extra income at the backend.
2) Here is another way to get lots of customers who keep coming back.
Do you know each customer you have made has a potential of bringing in tens and hundreds of other customers? Sure, you can cut down on your promotional costs through what is known as Referrals.
Every time you deal with satisfied customers, ask to meet or communicate with their friends, or anyone important to them, about your products or services.
You could even make it a bit formal, like getting such old time customers to enter the details of other people they want to refer in a document.
Promise to give a freebie to any customer who is ready to refer others to you.
Also, let the people they refer to you get a sample or demo of your product or service for free, so they don't only see you as somebody they can trust, but also as an expert or marketer of genuine products or services.
By doing this, you will not only win them over, but you will have succeeded in making them come back to you and even getting them to refer their friends to you.
This is another way to earn extra income from your marketing efforts over and over again, all at little or no promotional cost, as you have spent little or no money to promote to new customers referred to you.
3) Yet another way to kill cost and bring in loads of customers is to ask yourself if there is any other marketer or company out there who presently has a strong relationship with customers to whom you might offer to sell a product or service that is related to, but does not compete with what they sell.
Make contact with such marketers or companies, ask them to introduce your product or service to their customers and give them lots of information on what you sell.
Again, give such marketers or companies testimonials which attest to the quality of your product or service.
However, don't forget to offer something in return: a percentage of the income you earn from each sale to any of their customers or an arrangement to help pay part of their cost of promotion will do the trick, among others.
At the end of the day, you will be dealing with new customers who are ready to buy all year round.