Vitalis Holdings 2020 #BusinessChallenge

#BusinessChallenge – Week 15

Hey Entrepreneurs!

Welcome to week 15 of the 2020 #BusinessChallenge. Last week we discussed the 2nd phase of The 1-Page Marketing Plan by Alan Dib.

What an amazing tool it is right!

This week we discuss the 3rd and last phase of the 1-Page Marketing Plan.

After (Customer) Phase

In the 1st phase, you identified who your ideal customers are. You also identified where you are going to find them and what you are going to tell them once you have found them.

In the 2nd phase, you designed a system whereby you gather the contact information of potential clients, how you are going to nurture them and make enough contact with them to show the value you offer and lastly how you are going to convert them from a lead to a sale.

Now, in the 3rd phase, you will be building a system whereby you can maintain and retain existing customers, increase the average lifetime value of each customer and receive consistent referrals from your existing customers.

Shoe, that is a mouthful right but probably the most important part. Who wants to lose an existing customer? I am guessing no one…

What do I do in the 3rd phase?

The third phase of the 1-Page Marketing Plan consists of the following 3 sub-sections:

1. How do I deliver a world-class experience?
2. How do I increase Customer Lifetime Value?
3. How do I orchestrate and stimulate referrals?

1. How do I deliver a world-class experience?

Here you have to think about, and maybe ask, what a world-class experience means to your customer. And then you have to implement that.

In this section, you also need to figure out what you can implement to continually impress (“wow”) your customers.

A few tips for you to focus on when building your model for this sub-section include:
a. How do you create a feeling whereby the customer wants to maintain a lifetime relationship with your business?
b. How do you make it easy for a customer to deal with your business?
c. What internal systems do you need to consistently deliver great service?
d. What marketing messages do you want to send out to create a feeling of belonging with a customer?

2. How do I increase Customer Lifetime Value?

Customer Lifetime Value is a metric whereby you measure what the value of sales from a customer will be over the expected life of that customer.

The calculation is not this simple, but it basically means the following:

Let us assume that a customer spends on average R1,000 with your business per year. Let us further assume that a customer remains on your books for an average period of 10 years. That would mean that your customer has a CLV of R10,000 (R1,000 x 10 years).

* Please read up more on this concept, as the calculation is a bit more complicated than this.

Now the easiest way to increase this CLV is through doing one or all or a combination of the following:
– Increase your prices so that the transaction value goes up.
– Increase the frequency of transactions, i.e. instead of spending R1,000 over 10 purchases, try and increase the 10 transactions to 12.
– Try and upgrade your customers to better packages that you offer, or get them to buy the more expensive product option.
– Try and Upsell and Cross-Sell with every transaction.
– And the one that most entrepreneurs forget about: reactivate you old customers.

Did you know that a study has shown that it is 500% cheaper at reactivating an old customer than it is to get a new customer? Crazy, right!

3. How do I orchestrate and stimulate referrals?

The first thing you need to think about is why would a customer give a referral to you?

What’s in it for them?

What’s in it for their friend or family member or colleague?

There always has to be something in it for someone, no one is going to give you a referral just because they think you are nice. Accept that.

You must offer your customer something as well as the person being referred to you. Start thinking along the lines of a:
– Free trial of a demo product
– Free trial of your services
– Discount vouchers for future purchases

Referrals do it to impress friends, look good or to really help their own friends. Not necessarily to help your business.

And always remember: Asking for a referral before delivering on your brand/business promise is the same as being a pushy irritating salesman – it makes you look bad.

Homework for this week

Your homework for this week is to finish the 1-Page Marketing Plan, at least for one product or service you offer in your business.

Remember that you can draft a 1-Page Marketing Plan for each of your products and/or services that you offer for sale.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Scroll to top