The Secret To Maximizing Profit That Your Grandfather Knew
Today we are in a hurry.
A hurry to earn money, be successful and live the dream lifestyle.
However in an internet-fuelled economy, we often forget that there are lessons that can be learned from the past that can help us today.
Take the small shops. The butchers, bakers, tailors and a wide variety of others.
These shops knew the one secret of maximizing a profit long before Amazon came along. That secret made sure they knew their customer’s names, where they lived and the names of their family.
What was the secret?
They understood the lifetime value of a customer.
What Is The Life Time Value Of A Customer
If you do a good job, provide excellent customer service and a fantastic product your customer will return, time and time again. Year after year.
The reason that the small business owner was so great at making sure they did their best was simple. If they didn’t, they would go out of business.
OK, so things are different now. The small shops are few and far between but the idea of ‘lifetime customer value’ still applies today in every area of business including Amazon selling.
A classic example happened to me today. I use a screen cleaning liquid for my laptop. My purchasing cycle was simple, I went online, looked at reviews and then purchased the product.
What made me buy? The images of the product looked professional; the reviews were good, and the ‘copy’ on the page was clear.
It was a little more expensive than the rest, but I was pulled in. A few months later it has run out and guess what…. I am buying the same product again from the same seller on Amazon.
Just consider this for a second. The product costs £11, and I have multiple devices I use it for so it lasts me about six months. So I am worth £22 per year to that business.
However over the next decade, I am now a £220 customer.
That is until they no longer make the product or let me down.
So what does this mean for you?
Well whatever business you are in, offline or online it doesn’t matter, are you providing a product and service of such high level that the customer would come back, again and again?
Only you can answer this question but take Google for example. It became the leading internet search engine because it delivered great results again and again.
Quality, service, price and branding are all key factors that you must get right when starting an online business and a lot of people who say you cannot earn money online usually fail at one or several of those areas.
In the Muslim Entrepreneurs Network, we cover branding, how to get the best quality products, customer service and much more. The goal is not to create a business that sells one product to someone once, but to create a business that people want to buy from time and time again.
You can apply this principle to any business you operate and over time, you will see results. Aim to be the best at what you do and the rewards will follow.
Thanks for reading.
The MEN Team