If you're a business owner, or manager, do you know the answer to these questions?
1.How many clients do you have?
2.Where did your clients come from?
3.How much have they spent with you?
4.What is the average that each client costs you to attain, and
5.What is the average that each client spends with you?
6.What margin, or profit, do you earn with each sale? And finally, and most important
ly,
7.When are they due to come back and spend with you again? You see, if you can answer question #2 and question #4, then you see that it probably costs you a fair amount of money to attract new business. However if you can attract that business back to you, for free, so they purchase again, you've saved time and money! Real Life Example:
Let's suppose I have a car and it's registration date is the 20th of February (written on the sticker on the windscreen). Therefore I need to get it checked by an authorised mechanice on or before this date, every year. Wouldn't it make sence therefore, for the mechanic who serviced it last year, to ring me up on the 20th of January and simply say "your car is due for rego next month, when would you like to bring it in?". If only every 2nd person that this mechanic rings books in, then they've spent approximately fifty cents to earn another sale. Final question: What kind of Customer Relations Database System does your business use?
