Local Businesses need to focus on many things when pulling together a marketing plan and often forget that each and every customer attracted into the business should have a lifetime value. No matter what you are selling the plan should be to find other stuff to sell, cross sell or sell at a later date.
If you don’t do this the cost to your business will be massive. Lets look at the maths involved.
Profit per sale £30
Cost of marketing per sale £3
If you upsell something to £36 profit
The cost of your marketing is still £3 – which uplifts you overall profitability by 2% making the cost of the upsell very worthwhile indeed. If you take it to the next step and increase the number of sales made your profit starts to rise exponentially.
Further if you then maintain the contact with the same client and can make a sale like this two or three times per year or over the course of the clients lifetime it is possible to very quickly transform your business into something very different.
- Upsell for increase profit.
- Cross sell for increased profit.
- Add value and don’t discount.
All are viable options.
At the same time you need to be focused on client retention. With this in mind I updated my mini blog with a personal rant and this is here.
Richard Smith can be contacted on 0845 226 9106 or via this contact page.