Client acquisition is used by all business owners who seek to secure the future of their business or practice. For various reasons existing customers move on, the very first task of a business owner is to secure replacements for those that leave. Step 2 is to improve on the number of new clients coming through the door to ensure the future prosperity of the business.
Client Acquisition is about building the future
Client acquisition is at the forefront of every business person’s and professionals mind simply because without a continual flow of new clients a business is destined to fail, this is why successful businesses have a customer recruitment strategy in place. Getting new business leads must be catered for in business costs.
So how to start? First you should know a value per customer because this will impact on how much you spend to acquire new clients. If the lifetime value of a customer to your business below $100 the system you select will be very different from that of a business where lifetime value is measured in thousands of dollars. So let’s start by defining customer lifetime value:
What is Your Customer Lifetime Value
Definition: Customer Lifetime Value or CLTV is the present value of the future cash flows or the value of business attributed to the customer during his or her entire relationship with the company.
Put simply a cosmetic surgery business specializing in breast implants which it charges $10K for would probably calculate customer lifetime value at $10K because their client is unlikely to come back for the procedure again. A physical therapist specializing in sports injuries may expect to take $1K for each injury and because they deal mainly with sports people they can expect the average client to be injured twice every three years for the length of their playing career. For a golfer that could be 50 years. 30 years for a tennis player, 10 years for a pro boxer and so on. So their lifetime customer value is calculated accordingly.
The next decision that needs to be made is: What percentage of that value should be spent on acquiring new clients? Many practices are spending heavily on Pay Per Click advertising which can be very expensive. An example is one of Otec Promotions Clients who was paying out an average of $3,500 per month to acquire nine clients using PPC advertising and now pays around one sixth of that amount to get an equal, or better, number of new clients through the doors of his practise. His PPC cost of acquisition was $389 per new client. The average lifetime value of this client was around $3K so $389 is a reasonable price to pay. His new cost per acquisition is $88.55 which he finds an even better price to pay.
Customer Recruitment Strategy
Contact Otec Promotions today to discuss your needs and we will draw up a proposal for you to look over. Our reputation has been intact for over 30 years because our systems work. Our interest is in improving your bottom line or you have no reason to work with us.
Call us toll free 1-866-216-5221 or contact us through Otec Promotions home page and ask about our client acquisition program.