The art of client maximisation
One of the things we teach Marketers Club members is that the process of marketing is not limited simply to the acquisition of clients. Marketing is also used to ensure you maximise EVERY CLIENTS value to your business.
What I want to explore with you is how to you can stop leaving money on the table and unnecessarily leaking the potential profits you could be making.
It has been well articulated that there are only three ways to make money in business.
- Get more people buying from you (Win new business)
- Sell it to them at a higher price (Increase the transaction value)
- Get them to buy from you more often (Increase the frequency of the sale)
One of the key reasons many businesses fail to maximise the value of their client base is because they are so heavily focused on the process of winning new clients they pay little attention to all the profit leakage points they have.
Clearly every business needs a solid system of client acquisition, but it’s important to note that this stage of the process is usually also the most expensive.
The first profit leakage point typically appears in the client acquisition process. Lead generation can be a costly process, but it becomes increasing costly if the business is not equipped to make sure that leads are captured and nurtured.
Chances are that right now you are leaking profits from your business for one reason alone – you don’t have a CLIENT MAXIMISATION SYSTEM in place.
Client Maximisation means that you have a clearly defined process to capture initial contacts and have a system for nurturing prospects into clients.
Too often prospects visit a business, whether online or physical, and simply come in and go out without any connection being made.
This means that the money you spent on marketing to grab their attention has been wasted as you failed to connect.
The fact is not every prospect is ready to buy the moment they meet you, so you MUST have a system in place to maintain communication and nurture the relationship until they are ready.
Recently I spoke at a conference and I outlined the 3 most common leakage points businesses have.
- The first profit leakage happens at the point of entry, when the prospect visits your website or premises, look around and leave without connecting.
It is vital that you are giving prospects a reason to connect with you. This means you need to offer access to real value that your ideal buyer wants.
- The second leakage point you need to be aware of is your ability to maintain a communication with your prospect while they are in the sales funnel. Too often businesses make their pitch and when the buyer doesn’t say yes instantly, they discard them.
The fact is that most businesses only offer people the chance to buy once or twice, but most prospects make their decision after six or seven points of contact.
It is this gap in your process where you leak a lot of potential profit. To avoid this type of leakage you need to employ what we call the rule of six. This means that following your initial point of contact with a prospect, you need to have a minimum of 6 more touch points in your system to move the buyer to the purchase point.
- The final leakage point occurs when businesses fail to maintain communication with the client and offer them other purchase options, upgrades and buying opportunities.
The most likely people to buy from you are those who already have. In other words, you are at least 10X more likely to get an existing client to buy again then you are to attract a new client, yet most businesses spend nearly all their time, energy and resources focusing on new business.
The ability to attract and convert new buyers is an important skill to develop, but you must never lose sight of the fact that you are likely leaving a lot of money on the table by not nurturing your prospects for longer and then not giving your clients the chance to spend more money with you by purchasing additional products or services.
If you get serious about addressing these potential leakage points and developing your own client maximisation system you will quickly see your bank balance start to grow.