Some people can quote how many unique visitors came to their site. They know how long each visitor spent at the site. And they might even know what their bounce rate is.
But when it comes down to it, the most important numbers are how much you’re earning per visitor and the lifetime value of all your customers.
How much is each of those new visitors worth to you?
That tells you how much you can spend on paid advertising or outsourcing free traffic methods.
And how much do you earn LIFETIME for each new customer?
That’s a stat a lot of webmasters can’t quote.
They don’t have a clue how to even figure out what the lifetime value is for customer…not to mention track it regularly and increase it.
Why is this stat so important?
Let’s say you sell an ebook for $20. But what if it’s costing you $30 on average to generate a new customer for that ebook? You can’t afford to advertise , can you?
But what if the average customer buys two additional ebooks from you (for $20 each) and also buys one of your video courses for $100. So they buy ebooks for $60 and a video course for another $100 to equal a total of $160.
You’d be making a serious mistake to cancel your $30 per customer advertising as you’d be losing out on $130 in profits on each of these customers.
How much can you afford to spend for each new client?
You can’t answer that question if you don’t know how much a new client is worth to you. It’s like blinding throwing money to the Google gods.
You could go through your customer database and your shopping cart or financial service software may help you figure out this number. That’s what I’ve been doing for years. I’m sure there are mistakes made in the process, but we get a basic idea of how much each client is worth.
Nick Bayley, CEO of MYeMtrics recently shared with me a custom software program he’s had developed that includes the customer lifetime value and a lot more. It can do split testing, computer visitor value, and show you exactly how much a new lead is worth to you every month.
Check it out today: http://mycoach.myemetrics.hop.clickbank.net
Once you’ve figured out your numbers, now you can strategically increase that number using the 3 ways to increase your lifetime customer value.
Method #1 – Increase your conversion rates.
I’ve been harping on this issue serious since before the Total Conversion Code came out. If you’re not converting visitors into sales, and sales into repeat customers, then you’re not running a long-term business.
What separates the winners from the losers in any market is how well they convert visitors into what they’re offering.
And we could take this even further. You don’t want to just convert visitors into sales. You want to convert the RIGHT visitors into sales. You should know who your best target customer is, the one you can produce results for. These are the ones who will be the customers who keep coming back and referring others to you.
Method #2 – Increase the average transaction value.
This could be done with an immediate upsell or two. After someone purchases, what else do you offer them immediately with purchase?
You might say, “But I don’t want to annoy them…”
And I agree. You don’t want to do so many upsells that it turns off a customer so they don’t purchase from you in the future. But if you’re not doing any upsells, you’re doing the client a disservice.
I doubt that the initial product you sell solves ALL their problems. It likely solves on primary problem. What other problems can you help them with today? If they buy a $19.95, what do you have that you could offer for $47? And how about a free one month trial to your $29.95 a membership site?
Pay attention to how the experts online do this. A company like Godaddy is very aggressive in their upsell process with dozens of possible upsells. Amazon has several upsells as well but it’s a much more gentle process (related products, other items like what’s in your cart, their 2 day shipping service, etc.).
Method #3 – Follow-up more often.
How often are you following up?
This includes both content pieces and sales messages. It’s pretty tough to follow-up too much as long as you’re not just sending out one hard sales pitch after another. That gets old quick! Mix and match content, entertaining stories, and additional products that will help your clients reach their goals.
You could create or find more products. Or you could develop joint venture relationships to sell additional products.
And you don’t have to rely just on email. Send out a direct mail piece to your paid customers. Hold a free webinar to share additional content & a limited time offer.
Run a quarterly product launch promotion.
Give them multiple times and ways to buy from you, all done to increase that lifetime customer value.
You can figure out these numbers yourself, or you can have it all done for you using software designed to track everything for you: http://mycoach.myemetrics.hop.clickbank.net
When it comes down to it, it’s not about pageviews, time on site, or bounce rates. You can’t deposit any of those in the bank…and they can’t pay your rent. It comes down to how much you’re earning per visitor, the lifetime value of a customer, and doing tests to improve those numbers every month.