WFIM is now The Little Guy Marketing, you can find our website HERE
How do you increase your customer margins? Are you getting all the business from your customers? Can you get them to spend more per order? Can you get them to come in more frequently? McDonald's taught a lesson when they started serving breakfast.
Disney is another success story at getting more of its customers wallet. Disney realized getting people into their parks was only part of the spending pie, they added hotels and restaurants. Brilliant!
Lets see how Starbucks does with the music business, do they need to get as big as Virgin Records? NO, Starbucks just needs to increase the spending of its customers.
Apple enjoys one of the highest margins per customer! They started by asking "What is a computer?" and "What is software?"
Do you know your share of your customers wallet?
This blog post was written by William Fennell an internet marketing consultant based in Michigan City.
http://www.thelittleguymarketing.com/
Monday, January 26, 2009
Sunday, January 4, 2009
Life Time Value of your customer lesson 2
WFIM is now The Little Guy Marketing, you can find our website HERE
Life Time Value of a customer lesson 2. Most people understand measuring profit by a product or service. We understand that a large pepperoni is more profitable than a medium cheese pizza.
Everyone thinks that marketing is about the products, we have been brainwashed to think that way. Profitability needs to be measured bu the customer! Which customers are most profitable? How do you calculate that?
1. Sort your customers by what they spend over a period of time.
2. Group your customers into buckets for the sake of time(ie all customers who spents under $40, those who spent $41-50, $51 and up and so on for 12 months.
3. For each group subtract all costs so that your left with the difference between that and the amount spent. This amount is the individual customer profitability.
4. Take overall revenue and divide by individual profitability to get a profit percent for each bucket.
So for example the Jones spent $10,000 on pizza last year. They order every week by calling in They never know what they want so it takes longer on the phone each call. They use a coupon and live on the outer edge of the delivery area.
Customer two, Mr Roberts is 22 and lives in the area and spends $3,000 on pizza last year. He responds to your email and orders online. He always gets a loaded meat pizza and picks it up at the store.
Who is the most valuable customer? I don't know, but you need to know for your business! When you know profitability by segment you can determine how much to invest in acquiring in each segment.
You need to think about how to market to the different audiences based on their margins. If Mr Roberts starts calling instead of ordering online or starts using delivery half the time your profits might slip.
IF you can drive better coupons to the Johnsons based on their profitability and get them to order online, or get one of their neighbors to order you can spread your delivery costs, and your profit structure might change.
This blog post was written by William Fennell an internet marketing consultant based in Michigan City. 219-210-6000
http://www.thelittleguymarketing.com/
Life Time Value of a customer lesson 2. Most people understand measuring profit by a product or service. We understand that a large pepperoni is more profitable than a medium cheese pizza.
Everyone thinks that marketing is about the products, we have been brainwashed to think that way. Profitability needs to be measured bu the customer! Which customers are most profitable? How do you calculate that?
1. Sort your customers by what they spend over a period of time.
2. Group your customers into buckets for the sake of time(ie all customers who spents under $40, those who spent $41-50, $51 and up and so on for 12 months.
3. For each group subtract all costs so that your left with the difference between that and the amount spent. This amount is the individual customer profitability.
4. Take overall revenue and divide by individual profitability to get a profit percent for each bucket.
So for example the Jones spent $10,000 on pizza last year. They order every week by calling in They never know what they want so it takes longer on the phone each call. They use a coupon and live on the outer edge of the delivery area.
Customer two, Mr Roberts is 22 and lives in the area and spends $3,000 on pizza last year. He responds to your email and orders online. He always gets a loaded meat pizza and picks it up at the store.
Who is the most valuable customer? I don't know, but you need to know for your business! When you know profitability by segment you can determine how much to invest in acquiring in each segment.
You need to think about how to market to the different audiences based on their margins. If Mr Roberts starts calling instead of ordering online or starts using delivery half the time your profits might slip.
IF you can drive better coupons to the Johnsons based on their profitability and get them to order online, or get one of their neighbors to order you can spread your delivery costs, and your profit structure might change.
This blog post was written by William Fennell an internet marketing consultant based in Michigan City. 219-210-6000
http://www.thelittleguymarketing.com/
LifeTime Value of your Customer Part 1
WFIM is now The Little Guy Marketing, you can find our website HERE
The Life Time Value of your customers or LTV, do you know what is is for your customers? By creating good relationships with your customers you can increase the LTV and convert prospects into buyers.
LTV lesson one: Do not pay too much to acquire a customer. Do not over pay to get a new customer. If your spending $500 a month on a phone book ad you need $500 a month in new business to cover that cost right? Actually no, its higher because you have lost customers that you need to make up for plus margins to meet. A brand new customer costs you more than existing customers.
Is it easier to acquire a new customer or to service an existing one an build on your relationship? Do you know what the retention rate is of your new customers? In an average business 50 percent of first time customers will not use you again! Are you average?
Things you need to know whats the average order size of a first time customer? what is your defection rate? whats the real cost of servicing a first time customer?
If you are online you may be paying for advertising clicks that do not convert to a sale! The cost of those clicks would need to be added to the cost of a newly converted customer. Most people who visit your site do not do what you want them to!
This blog post was written by William Fennell an internet marketing consultant based in Michigan City Indiana. 219-210-6000
http://www.thelittleguymarketing.com/
The Life Time Value of your customers or LTV, do you know what is is for your customers? By creating good relationships with your customers you can increase the LTV and convert prospects into buyers.
LTV lesson one: Do not pay too much to acquire a customer. Do not over pay to get a new customer. If your spending $500 a month on a phone book ad you need $500 a month in new business to cover that cost right? Actually no, its higher because you have lost customers that you need to make up for plus margins to meet. A brand new customer costs you more than existing customers.
Is it easier to acquire a new customer or to service an existing one an build on your relationship? Do you know what the retention rate is of your new customers? In an average business 50 percent of first time customers will not use you again! Are you average?
Things you need to know whats the average order size of a first time customer? what is your defection rate? whats the real cost of servicing a first time customer?
If you are online you may be paying for advertising clicks that do not convert to a sale! The cost of those clicks would need to be added to the cost of a newly converted customer. Most people who visit your site do not do what you want them to!
This blog post was written by William Fennell an internet marketing consultant based in Michigan City Indiana. 219-210-6000
http://www.thelittleguymarketing.com/
SEO Internet Marketing Michigan City Indiana 219-210-6000
WFIM is now The Little Guy Marketing, you can find our website HERE
How many web designers in Michigan City can truly say that they know about internet marketing?
There are plenty of web designers who make beautiful and technically correct websites,but for the most part they are not internet marketing savvy.
Do they know how to implement email campaigns? Or have they suggested a lead capture mechanism for your site or an auto responder? Does your web designer know what SEO is needed for your business? How much did they talk to you about key words for your site?
Do you or your web designer know what key words your customers are using to look for you and your products? Are either of you familiar with the term local search? If a web surfer in Los Angeles finds your site does it do you any good when you only sell local services?
I am an Indiana based Internet marketing consultant. I help small business owners use their websites to make money and get more customers. Contact me at 219-210-6000for a free consultation on how to use a website better and use a customer list of emails to bring more profits to your business.
This blog post was written by William Fennell an internet marketing consultant based in Michigan City. 219-210-6000
How many web designers in Michigan City can truly say that they know about internet marketing?
There are plenty of web designers who make beautiful and technically correct websites,but for the most part they are not internet marketing savvy.
Do they know how to implement email campaigns? Or have they suggested a lead capture mechanism for your site or an auto responder? Does your web designer know what SEO is needed for your business? How much did they talk to you about key words for your site?
Do you or your web designer know what key words your customers are using to look for you and your products? Are either of you familiar with the term local search? If a web surfer in Los Angeles finds your site does it do you any good when you only sell local services?
I am an Indiana based Internet marketing consultant. I help small business owners use their websites to make money and get more customers. Contact me at 219-210-6000for a free consultation on how to use a website better and use a customer list of emails to bring more profits to your business.
This blog post was written by William Fennell an internet marketing consultant based in Michigan City. 219-210-6000
Sunday, December 28, 2008
What makes a great pizza?
WFIM is now The Little Guy Marketing, you can find our website HERE
Whats the one ting that makes a great pizza for you? Is it the amount of the sauce? Do you like less sauce? A sweet sauce? How about the cheese? Alot or a little? Lightly melted cheese or maybe an almost burnt crispy cheese?
What kind of toppings? Anchovies? Sausage? Pepperoni? Ham and Pineapple? Maybe a veggie pizza for you or just a cheese pizza. Splash on some mushrooms?
Now don't forget the crust, should it be thin, thick or hand tossed? Chicago style deep dish? Crispy or soft?
Michigan City has plenty of great pizza places where you can find the pizza of your choice.
Do you want your pizza website to show up as number one for Michigan City Pizza? Call me today so I can help you. 219-210-6000
This blog post was written by William Fennell an internet marketing consultant based in Michigan City.
http://www.thelittleguymarketing.com
Whats the one ting that makes a great pizza for you? Is it the amount of the sauce? Do you like less sauce? A sweet sauce? How about the cheese? Alot or a little? Lightly melted cheese or maybe an almost burnt crispy cheese?
What kind of toppings? Anchovies? Sausage? Pepperoni? Ham and Pineapple? Maybe a veggie pizza for you or just a cheese pizza. Splash on some mushrooms?
Now don't forget the crust, should it be thin, thick or hand tossed? Chicago style deep dish? Crispy or soft?
Michigan City has plenty of great pizza places where you can find the pizza of your choice.
Do you want your pizza website to show up as number one for Michigan City Pizza? Call me today so I can help you. 219-210-6000
This blog post was written by William Fennell an internet marketing consultant based in Michigan City.
http://www.thelittleguymarketing.com
Web Designer Michigan City
WFIM is now The Little Guy Marketing, you can our website HERE
Are you looking for a web designer in Michigan City? There are lots of designers out there that can make beautiful websites, but the question is does your designer know how to market on the internet?
Having a great looking site with flashy things and videos won't bring you a dime if its not setup right to be found in search engines. It is also a waste of your money if you do not have a method for lead capture information. You need to be able to know who your customers are that visit your site.
Does your site have a way to capture the email of your visitors? A little box in the corner that says contact us hardly does the trick. Contact me today so we can get a lead capturing system on your site today. Ask for Bill 219-210-6000 I may not make the prettiest websites but I know how to make ones that will make you money!
This blog post was written by William Fennell an Internet Marketing Consultant based in Michigan City, IN
219-210-6000
http://www.thelittleguymarketing.com
Are you looking for a web designer in Michigan City? There are lots of designers out there that can make beautiful websites, but the question is does your designer know how to market on the internet?
Having a great looking site with flashy things and videos won't bring you a dime if its not setup right to be found in search engines. It is also a waste of your money if you do not have a method for lead capture information. You need to be able to know who your customers are that visit your site.
Does your site have a way to capture the email of your visitors? A little box in the corner that says contact us hardly does the trick. Contact me today so we can get a lead capturing system on your site today. Ask for Bill 219-210-6000 I may not make the prettiest websites but I know how to make ones that will make you money!
This blog post was written by William Fennell an Internet Marketing Consultant based in Michigan City, IN
219-210-6000
http://www.thelittleguymarketing.com
Variety of restaurants in Michigan City
WFIM is now The Little Guy Marketing, you can find our website HERE
We have a variety of restaurants in Michigan City. We have pizza places, seafood places, steak joints, and Chinese restaurants. We have mom and pop restaurants as well as some nation chains. You can find just about every kind of food at restaurants in Michigan City.
There are high end restaurants as well as greasy spoon restaurants. Frankly I seem to enjoy the food at greasy spoon joints more. Some place have character and ambiance, some look like a hole in the wall. Some have been around for decades, while some barely make it a year.
No matter what your tastes you should be able to find a great place to eat in a Michigan City restaurant. If you want your restaurants website to be number one in google you need to call me for help. 219-210-6000 Call today! This blog post was written by William Fennell an internet marketing consultant based in Michigan City.
http://www.thelittleguymarketing.com
We have a variety of restaurants in Michigan City. We have pizza places, seafood places, steak joints, and Chinese restaurants. We have mom and pop restaurants as well as some nation chains. You can find just about every kind of food at restaurants in Michigan City.
There are high end restaurants as well as greasy spoon restaurants. Frankly I seem to enjoy the food at greasy spoon joints more. Some place have character and ambiance, some look like a hole in the wall. Some have been around for decades, while some barely make it a year.
No matter what your tastes you should be able to find a great place to eat in a Michigan City restaurant. If you want your restaurants website to be number one in google you need to call me for help. 219-210-6000 Call today! This blog post was written by William Fennell an internet marketing consultant based in Michigan City.
http://www.thelittleguymarketing.com
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