Saturday, September 17, 2011

Save Huge Money With The Right Marketing Focus

Since 1983 till now the cost of recruiting a new customer to your business has increased by 300%. The amount this new customer spends in your business has reduced by 50% over the lifetime of the customer.

So an example could be if in 1983 the cost of getting a new customer was $10 and they spent, on average $250 with you your gross profit would be $240. Today getting that same customer would be $30 and they would only spend $125. Reducing your gross profit to only $95. A reduction of over 60% in gross profit, not to mention the addition time and frustration it takes to attract new customers today, with the incredible amount of "marketing noise" that exists that wasn't around 200 years ago.

So it make so much more sense to invest your time, effort and money in creating additional services and products to sell to existing customers than trying to get new customers to buy existing products and services

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