If you are a business owner, you are probably using a combination of these marketing strategies: Website, social media posts, perhaps the services of a generic marketing agency.
The problem with these, as you would have experienced is that
- You cannot precisely measure the profit you make from new clients as a result of these methods and
- Often times its more of an expense and brand building exercise without consistently converting new clients
It can be frustrating wanting to grow your business while there is the concern of expenses without tangible results
Wouldn’t it be nice to know what results you will get from your marketing investment and to have a consistent flow of new quality leads coming to your business?
How is it even possible to achieve a 500% return on marketing investment spend?
We’ve got good news, it’s possible and were going to show you how.
Calculate the average lifetime value of your top clients
I.e. for a gym with a monthly membership fee of $50 its $600 per year. If the average customer stays a member for 3 years the average lifetime value of one client is $1 800.
Hence to achieve a 500% return on invest you can have marketing spend up to $1 800 / 500% = $360 to find that one client.
To repeat, if you spend $360 on marketing to eventually have one client paying $50 per month and $1 800 over 3 years, you achieve a return on your marketing invest of 500%
As long as you keep doing this your future profit will greatly outweigh the cost of marketing.
The good news is, in reality you can get that new client for an ad spend of +- $15.
How is this possible?
Below we will share the steps to utilize the most effective digital marketing strategy to on board those ideal high value clients automatically in a cost effective manner.
For ease of use we also include a video link at the end which explains the entire strategy in more detail
1) Define your ideal client (high profit potential)
"When you market to everyone, you are really marketing to NO one". Define your typical high profit client.
The better you define and understand your ideal customer, the better you will be able to solve their unique problems at a higher price point and speak to them in a language which resonates with them.
2) Create a jaw dropping offer which new clients cannot resist i.e. 60% first visit discount on one of your products / services
Attract them into your business the first time with an offer they cannot resist. Then you can build the relationship with them and up sell your higher priced products in the future.
3) Craft an up sell value ladder to maximize client profitability
Click on the video link at the end of this article where I will illustrate this strategy to you.
4) Serve quality ads to exact audience.
Paid advertising with Facebook and Google still remains one of the best ways to find and attract your ideal customers, based on their interests, likes, demographics etc. (And the cost to acquire a client is much lower than i.e. radio, TV and magazine ads)
5) Design an offer specific landing page (not a general website) to send them to
Websites have a low conversion rate while offer specific landing pages removes distractions and lead to higher conversions. (See video at end for more information)
6) Systemize the opt-in process for customers to book their first visit to your business (via Calendly) and automatic Client Relationship Management system update (via Zapier).
7) Convert and up sell leads as they visit your business to become monthly paying clients
8) Retarget undecided prospects to achieve 85% more sales
Install tracking pixels on your website, blogs and landing pages. Retarget potential customers who visited these pages, but who didn't become customers yet, via Facebook / Google Ads or setting up an automated email sequence.
9) This whole process is automated to find leads 24/7 – you simply watch your CRM get updated daily with new leads and your team converts them into paying clients.
The bottom line:
If new customers visit your business, take up the special offer, and you can typically convert every 1 out of 5 of them into monthly paying clients, you hence need 5 leads to get one paying client of $50 pm and $1 800 over 3 years as before.
Using the system above, you can typically get a quality lead for +- $3 ad spend per lead, hence a total ad spend of $3 x 5 = $15 to turn that into 1 paying client.
To convert 10 new clients per month:
Client lifetime value unlocked: 10 x $1 800 = $18 000
Ad spend 10 x $15 ($150)
Professional lead generation service
to build and maintain this system ($2 000)
Value unlocked per month $15 850
Finally, you can harness the power of digital marketing to grow your business fast in a measurable manner!