Compound Effect: New Leads vs. Retention
New Leads Vs. Retention
Most internet marketers I see online are building a lot of hype, sales and marketing because they need lots of new leads. A big complaint in the industry is that people don’t stick around because they aren’t feeling helped, and many internet marketers have such low introductory offers that they don’t have time to justify helping and coaching others. If you focus on a better product and you focus on retention and helping people long-term than you’ll get a lot of word of mouth if you do a great job.
Let’s do the math: If you focus on 1 client who pays you monthly for 12 months, there are 12 new customers that you don’t have to try so hard to get on 1 time sales. Many internet marketers are selling non stop 24/7 because they always need more $49 and $99 sales to make a living. I say work on the lifetime value of the customer, focus on recurring income, what does that value based service look like and provide it. The math and time leverage just makes sense. It just depends on your perspective, point of view and focus that you have every day as a habit, as well as your thoughts.
Focus on Retention
If you focus on retention, and focus on satisfying the people, you will find out what your highest value is, you can pinpoint the value proposition you are giving them. For example I find that I help people a lot with systems, and tracking of data analytics. By having great habits of tracking data each day, you have a point of reference to measure from day to day, and you tweak and improve each part in the system, and each conversion rate. These tiny adjustments towards improvement don’t just add up to a lot, they actually multiply up to more than you can imagine.
If you continue to follow my blog you will see as I provide you compound effect math of % increases multiplied against each other and how you end up with 10x the sales and or 10x the profits. You first must have the thinking and mindset right first. Get good at the systems thinking and holitic view. Your goal is to focus on how to keep customers because today it’s said to be much harder then ever to get the customer, but much easier then ever to keep them.
Retention leads to referrals
When you keep customers happy by retaining them, and you continue to give service, in the meantime you compound the value, build the relationship, and over the long-run you become a business associate and friend and you become top of mind, and soon you can increase your probability of referrals. Referrals may also lead to new clients that stay with you 12 months, making that first client worth almost double the original estimate.
The math doesn’t lie with the compound effect, it’s powerful when you understand the overall framework towards time leverage and great success. As you continue to read this blog I’ll give you the clarity on how to scale your business by doing the right things daily. With the right daily habits.
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