STEP 1: What percentage of your sales volume comes from repeat or referral customers? These customers are driven to you by past satisfaction.
Don’t read any further until you’ve decided on a percentage. Give it your best guess.
STEP 2: What percentage of your sales volume is triggered by your location and its exterior signage? These customers come to you because of your visibility.
Again, write down a percentage, your best guess.
STEP 3: Add those two percentages together, then deduct from 100.
The remaining percentage is your “advertising driven” traffic, new customers who come to you solely because of your ads.
I’m betting this percentage is a lot lower than you would have guessed. Am I right?
STEP 4: How many unique customers have you served in the past 12 months? Write down a specific number. You’ll probably need to consult your records.
STEP 6: Divide that number into your annual ad budget.
STEP 7: Write your Cost of Customer Acquisition – the number of dollars you’re paying to bring one new customer into your business – LARGE on a sheet of paper, or put it on your computer screen in a 72-point font.
Stare at it for a moment.
1. With the cost of new customer acquisition so high, why advertise at all?
2. How can we drive this Cost of Customer Acquisition way, way down?
B: They have heard about you and they don’t like what they’ve heard. These customers – based on information given to them by others – have made the decision not to do business with you. A good ad will give them new information that may lead them to a new decision. You may also need to invest more energy in customer service and relationship management.
“With the cost of new customer acquisition so high, why advertise at all?
The primary goal of advertising is to acquire new customers. Your future repeat and referral business depends on it. Good customers move to other towns, or die, and you never see them again. It happens to every business and it happens every year.
Additionally, new people move into your town and have no idea where to shop. Approximately 20 percent of the average American community didn’t live there 1 year ago. How are you reaching out to these newbies? Are you crossing your fingers and hoping they’ll meet one of your loyal customers? Are you counting on the newbies noticing your sign, or perhaps finding you online? These things can happen, to be sure, but is this your growth plan for 2011?
Each registrant will leave with a customized plan to attract new customers. You will learn a little, work a lot, guided every step of the way. Register early and save the cost of a hotel room. The first 14 to sign up will enjoy 1 day/2nights at no charge in exciting Engelbrecht House, Wizard Academy’s amazing student mansion. Additionally, although this 1-day class is only $750, it will qualify you as an Acadgrad and you’ll save 50 percent on all future classes. (Acadgrads, this class is just $375 for you.) Arrive Sunday afternoon, spend the night in Austin, work like a dog all day Monday, relax in Austin that night, then return home Tuesday the 15th with an incredible new plan for customer acquisition.
will be the 2-day/3 night Eisenberg/Sexton Web Copy Workshop happening March 30-31. Take a look at what Wizard Academy’s web copy geniuses have planned for you. Wow. Remember, Eisenberg has written 2 books about online marketing that were both New York Times bestsellers and he often asks Sexton for advice.
Feb 22-23, make better face-to-face presentations. We’ve saved you a free room in Engelbrecht House so you won’t have to rent a hotel or pay for meals. What a deal! Join Steve Rae and me for Public Speaking 101, a longtime favorite class of Acadgrads worldwide.
If you would like to begin measuring these things accurately, here’s how it can be done.