A friend of mine once told me how he’d spent an evening collecting door-to-door for a charity. He raised about £75, which he thought was quite good. His wife pointed out that if he’d worked voluntary overtime at his day job instead – which would have been less exasperating – he’d have made more than that. He could then have donated his earnings to the charity. Everyone wins.
I mention this as an example of how we don’t always think about the value of what we have, and what we do. In business marketing, it’s often hard to know what our assets are worth. But there’s no reason not to try.
Here’s another example. A few years back, here at BMON we realised that a large proportion of our new clients had been long-time readers of these daily articles. Many were people we didn’t know before. We could estimate how many clients were coming in this way, and the average value of a new customer is something every business can work out. It wasn’t hard to work out that for each new reader we added to our email list, we generated maybe £100 of business.
Of course, there are limits to growth, but you might be able to guess how that changed our marketing strategy.
How many visitors to your website each day visit anonymously, but might have been tempted to leave their details if offered something useful? What proportion of those might then go on to become customers?
What is the lifetime value of an average new customer?
How much would ‘something useful’ cost you to create?
Here are some random, fairly conservative figures. Your website has a dozen first-time visitors each day. You offer them a really good monthly technical advice email, and 2-3 people who you don’t know (under 5%) sign up each week. Over time, you convert 5% of these subscribers into customers. That’s 1 new customer every other month, with a lifetime value of, say, £10,000 profit.
So: can you commission somebody to write a good monthly technical advice email each month for less than £5,000? Insert your own figures, but I’ll leave it for you to work out.