There are numerous options for scaling a business
including advertising, upsells and product expansion. Business growth requires
client base growth or an increased value for existing clients. These options
are not cheap or easy. Email marketing is an option that requires content
creation, overhead and labor. This is all part of the acquisition costs and
adds an expense for each client acquired. Every business is different even if
the services and products are the same.
The LTV must be established to know the
acquisition costs. It is five times cheaper to sell to existing customers than
spending money to acquire new customers. A generalized LTV value can be
established by totaling the existing customers along with their annual revenue.
When this total is divided it reveals the average amount a customer spends in a
year. Once the LTV has been raised funds can be spent on new customer
acquisition.
Marketing and direct mail are more targeted campaigns
to land valuable clients. Acquisition campaigns can be customized to drive
dedicated traffic resulting in valuable, targeted accounts. Acquisition is much
easier once the customer lifetime value has been established. The old SEO
optimization and PPC ads are not necessary to land clients. LTV and CPA can
help improve sales to existing prospects. Email campaigns can be created to
focus on remarketing customers who only made a single purchase to increase
sales.
Investing and pampering existing customers will
provide reasons for them to stay. This will dramatically increase their average
spending. As the business grows additional employees can be hired. The will be
invested in the success and growth of the business to help sustain and grow the
business. A flat rate for all customers is not the best option. As a clients
business grows they will need more services and new plans can be created to
increase the cost. This is beneficial for the growth of both the clients and
the business.
A site audit can be conducted to find out if a
client needs something that would be a benefit but is not being provided. There
are tools that show what type of technology a client is using. This provides
insight into any gaps enabling the business to try and sell additional
services. Upsells can be used for a lot more than just making money. They can
provide opportunities for a client to grow. This will help ensure they remain a
client for many years. These are some of the ways to create clients with a high
lifetime value. This means money will be reinvested into the business and the
funnel will continue to expand and move forward.
The most important considerations for scaling any
business using either SEO or PPC are acquisition costs and lifetime values.
Lifetime values should be focused on first because this will enable the
business to spend more money on acquisitions. A cylindrical process and better
campaigns will enable the business to acquire the best clients possible. Sales
to existing customers are the beginning of acquiring additional clients in the
future.
