 |
 |
Case History wfb81-1130
In support of announcements to customers, Marketing Information Kits help train bank officers to convert to 80% sales
|
|
 |
Case History PSI91-520
Sales presentation materials provided a major electric utility with the means to book average sales over $200,000 each.
|
|
 |
Case History REL96-01
Real Estate Pre-Qualification Kits provide bank calling officers with leverage in booking real estate loans through agents.
|
|
 |
Case History USW92-720
Interactive sales materials extended reach extended reach telecommunications company, cutting sales cycle in half for $250,000 sales!
|
|
|
 |
Allowable Cost of Acquistion
How much can you afford to pay for a customer? How much for a lead or inquiry? If you don't know, you really need to think twice before you commit to any significant advertising program and be especially careful in planning your direct mail. If a customer is only going to spend, say $100 with you and your net profit is less than $20, you certainly don’t want to spend $34.67 each to book them the first time…unless, of course, they're likely to spend several hundred dollars over the course of a year.
At the risk of oversimplifying this very complex subject, let's look at the issue from a long-term perspective. Let's say you have conducted a profile of your customers and separated them into two basic categories: those that are profitable (or soon to become so) and those that are not (and are unlikely ever to be) profitable. Now, you obviously don’t want to spend money acquiring more of the latter if you can avoid it.
But, the key is to determine how much profit you will make on the average customer over the projected life of the relationship. This "lifetime Customer Value" (LTCV) helps you decide how much you are willing to invest in either referral fees, advertising costs or special promotions in order to get a new customer on the books for the first time or revive a waning relationship.
Until you know this value, it is premature to design any advertising campaign. Period.
|
|
