Lifetime Value and how to works it out for Marketing Purposes

It’s Duncan from PWP Web Design and after going on a marketing course recently, I thought I could pass on some of the things I picked up on. Marketing is my business, that’s to say marketing other people businesses is my business. This is why I absorb as much information as I can.

Let’s say you would love to start attracting new clientèle to your hair salon. There are lots of steps you can take to heighten the effectiveness of any campaign. The aspect we shall be looking at today is “life time value”. Do you know the lifetime value of your clients? If you don’t then how do you know how much to invest in order to make it worthwhile to attract them in the first place?

In this example we are using hairdressers, one because they were used on my marketing course and two my business partner David was an ex-hairdresser. You can of course substitute your own data to work out the lifetime value of your clients by asking yourself these questions.

·         What is your customers average spend?

·         How many times do they visit you, per year?

·         How long are they loyal to you?

LET’S WORK SOME FIGURES OUT:    

·         Average spend is £50

·         They visit 6 times per year

·         They stay loyal for an average of 5 years

Remember these are figures for hairdressers, your business will vary.

Now that we have these figures we can work out each customer’s life time value:

£50 x 6 x 5 = £300 x 5, = £1,500

Now you are in a very powerful position! If you know how many customers are on your books you can calculate a good idea of your turnover this year? Each customer being worth £300 per year. You can also work out how many more customers you need in order to reach your 3 year or 5 year goals. You can also work out which form of marketing or advertising will work well for you.

Let’s assume you know a really good online marketing company (you know who) are regularly getting other businesses like yours 12 new clients a year.

Those 12 new clients visit the salon every 8 weeks over the year, spending an average of £50 each visit:

That’s 6 visits per year for each new client (£300) multiply by 12

 = £3,600 of new business per year. Or x 5 = £18,000 over their loyalty lifetime!

WHAT IS THE INVESTMENT WHICH GETS YOU £18,000?    

Our research figures show Flexiads at £59 per month x 12 for the year = £708

£18,000 as return on investment of £708 as percentage is + 2,542%

WHAT THIS MEANS:

If you can answer these questions:

·         What is your customers average spend?

·         How many times do they visit you, per year?

·         How long are they loyal to you?

AND you have a good idea of the conversion rate of each marketing strategy.

FURTHER ADVICE:

There is a great blog on the life time value of customers – CLICK HERE

More information on PWP’s Flexiads – CLICK HERE

UK Marketing Magazine – CLICK HERE

About the author:

Duncan Malloch is an entrepreneur from the UK with specialism’s in online marketing, website design, search engine optimization and coaching. If you are looking for a one stop shop to promote your business online, visit the PWP Web design website by CLICKING HERE. Thank you

Why are You Sabotaging Your Happiness

I am looking to help someone, a business owner who maybe recognises that they are like this:

·         You’re not happy and you blame everyone but yourself for your situation.

·         You even put your own blinkers on because even you don’t want to realise how silly you’ve been.

·         Your next action will determine if you are really ready to stop messing about and sort your business and your life out.

**WARNING **Please IGNORE this blog if you are NOT ready for change. IGNORE this if you are deluded into thinking your current LOT, is the best you can hope for. Please IGNORE this blog if you can’t make a decision. IGNORE this if you are beyond help. IGNORE this posting if you put ANYTHING before your complete happiness. This is your last chance if you want to stay an also ran, IGNORE this now!

***********************************

Now then, would it be fair to say that if you had enough money to pay for your car, your mortgage, clear your bills, pay for your children’s education and have plenty left over to afford a great holiday twice a year – YOU and your family would be a lot happier?

Unlike the majority of people YOU have a way to achieve this dream of a happier life. YOU have a business! Your business and how you run it is the KEY to your future success and happiness. I know it, even if you haven’t realised it yet.

But You Have a Big Problem, Don’t You?

You are not making enough money to pay all your bills, let alone go on two exotic holidays a year! If only someone would come along and show you the way to increase your profits, bit by small bit until you grew in trust and confidence and realised that BIG increases in profits are possible. All these things YOU need to be happy are obtainable. You’ve been offered ways out before and turned genuine opportunities away – The worst of it is, you don’t really know why! YOU could be living a life of bliss right now. I hope you are ready, FINALLY, to change, man up and bloody do something about it!

Here is the Offer

I can guarantee that I can increase your profits, increase your feel good factors by helping you get more customers. What I need to know is?

·         How much is your happiness, and that of your family, really worth?

·         How many customers do you need, who are they and where are they?

·         How quickly can you grow?

·         What would make you and your family really happy

My Promise to You

If the answers to the above questions are worthy, I will guide you towards that happiness, if you are determined, I can make it happen.

Your Action

Reply by email by answering all the questions above, or IGNORE it and go watch TV

Email address is duncan@pwpwd.co.uk - Thank you

Get Success – Get a Website!

If you don’t have a website, it’s the same as trying to compete with a farmer who has acre upon acre of land, and you have a small back garden. You are simply missing out. That said it doesn't mean that by having a website, you are guaranteed business success. You need to recognise its potential and commit resources to take advantages of all the benefits. If you want to increase your brand recognition, or want more potential clients to visit you online, your website is the ideal place to make this happen.  Most businesses conduct themselves in ways that are professional, efficient and ethical, yet their image, as portrayed by their website paints a completely different picture. If this rings any bells, please consider the following advice:

Despite what People Say – A Book is Judged by its Cover!
Your website is sometimes your first impression prospective clients have of your company. What does it say about you? Not so much in words, but in the design, the overall feel of the site? We’re not saying your website has to be a masterpiece winning design awards. What we are saying is if you fall below the standard of design quality set by your competitors, you can’t expect to win business from them, can you? If your website looks like it was put together by a school boy, then people will correctly or incorrectly assume that your business is unprofessional, incapable and untrustworthy. You only have 2 seconds to Wow your potential customers. If you were a client, would you be compelled to stay?
A well designed website that engages with your clients can work wonders for your business. It instantly feels right and that your company is professional, reliable and trustworthy – top quality. This professional, polished look for your website doesn't have to cost you a lot. It should be looked at as an investment; you just need to find a web design team that can give you these benefits.

Content is King!
Your potential client will most probably have found you by typing specific search terms into Google. Make sure that the web page they land on gives them exactly what they are looking for. It’s important to understand your target market and know what they want and how they like to be treated. Are they visual people? Do they like images, or detailed text?

Your home page should be about your company, tell the world who you are, what products and services you provide, and the benefits of choosing you over your competitors. Keep the text short here your customer could be put off by information overload. You can always add Click Here for more product information. Give your potential customers reasons to keeping coming back to your website. Engage with them by offering things like tips, tutorials and special offers. Keep your content interesting and informative.

Guide Your Client with Excellent Website Navigation.
No-one likes being lost, do they? Your web designer should make sure that no how complex your business is, your website is easy to follow. Being able to effectively direct clients by channeling them to the products and services they need is of the utmost importance.  We suggest creating a plan, like a family tree, to understand the navigation aspects of your website before you do anything else! Make sure that it is user friendly and allows customers to easily find exactly what they are looking for.

I’ve Got a Ferrari!

Actually, I haven’t, but, if I did I would want people to know that I had one. It would be no good tucked away in the garage 24/7. It’s also the same as having your business card sitting on your desk or in your wallet, they do no good there! A great website gets you noticed, gets your business out there and this aspect of getting your website found is called SEO or Search Engine Optimisation. It is the fine tuning of your website so that the search engines, like Google, find it and place it in front of all those prospective customers. Search Engine Optimisation is a difficult subject to keep abreast of. But you don’t have to be a specialist; you hire one to make sure your website is found by the search engines and your target audience. PPC (Pay Per Click) is another way that can get you in front of them. You control your budget, keywords etc; under the umbrella of a campaign. If SEO isn't for you, maybe this will enable people searching for your products or services, find you more easily.

Link Juice
Link Juice is how some people describe the effect obtaining a link from another website to yours affects its ranking. An easy way to add link juice is to add your website link to your listings on online directories. Most directories will also give you the option to give a brief description of your business too. Adding your web address will help direct prospects to your website where they can find all they need to know about your business. Be careful though, other websites which take payment for links, or, all they do is provide links and nothing else are sometimes called link farms. A link from one of these link farms can damage your website, sending it the wrong way in the rankings. This is one reason why we would recommend professional help from a specialist SEO consultant.

Would You Prefer New and Fresh, or Old and Withered?
There is nothing worse than being out-of-date. The same is true for your website; it has got to keep your customers informed of new product lines, new offers and new services. There’s nothing worse than visiting a website in Easter to find all the Christmas offers still there! Make sure you choose a web designer who will manage these updates for you as frequently as necessary.

Have You Heard About The Latest Movie? 
Facebook and Twitter are the places where you hear about the latest happenings. New movies, new albums and your new products! Yes today, more and more businesses are using these forms of social media to inform online communities about their line of work. You can create your own Facebook page and post articles about your company, promote new products and offers and invite people to follow and like you. These forums, tweets and blogs provide a means for customers to interact directly with you and each other. It is this ability to share knowledge with others that will help to build your company’s brand and elevate your company’s position within your specific sector. It is easy to post press releases, hint and tips onto your website and then share them to your blog, Facebook and Twitter. When visitors see them, they too can share with their friends. Utilising these social media facilities also has the added benefit of giving your website SEO links which help you rank even higher in the search engines.

Summary.
There are many things you can do to make your business website more successful, and reflect the professional qualities of your products and services.  Your website is a marketing asset, a true business investment.  Take time and ensure the design feels appealing. The content is interesting, informative, and the site is easy to navigate. Next see what you can do to promote your website using SEO techniques to get it found more easily by the search engines.  Don’t forget the simple things too. Things like adding your web address to your business card and including it on other forms of advertising like posters, brochures and your company vehicles.

Links:
Newcastle Website Design Middlesbrough Website Design Darlington Website Design York Website Design
Search Engine Optimisation
Facebook Web Designer
Google Plus Web Designer