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Ways To Produce Short-Term Revenue With Long-Term Gains

How can a company produce short-term revenue while investing in a long-term customer partnership? Ciaran Nagle, a reader of Inside Strategic Relations, and I have mulled over this question in a recent conversation. Here are a few of our ideas that you can use today:

  1. Sales & Marketing incentives that reward those who find repeat buyers. Measuring the value of customers gained in every marketing campaign means understanding your conversion rate, customer lifetime value, and market segment.
  2. Reducing the size of an initial investment. Whether "3 easy payments" or a lower priced lead product, profitable customer relationships with a buying action. Make it easy for customers to make that first purchase today.
  3. Reward weekly actions, monthly results, and yearly returns. Measure your sales staff on what actions they take each week that go beyond what customers expect. Acknowledge revenue produced each month, but focus on profitable customer reattained each year.
  4. Avoid using discounts to attract new customers. By saving infrequent discounts as rewards for existing customers, not to attract new customers, you create greater incentive to stay with your organization. Cutting revenue helps neither customer or bottom line.

When you take the long view, you generate the revenue you need to keep the doors open, but keep customers you need to grow a business. Too often businesses focus on todays dollar without considering the overall value of a customer. You'll gain more from this dualistic view of customer acquisition.

For more strategies you can use contact Justin Hitt at (757) 282-7779. We're here to help you and look forward to hearing from you.

Ciaran Nagle is the Marketing Director of ProCustomer, a UK based firm that helps automate and simplify the customer communications process.

/ cultivate-topten | management-strategies /

By Justin Hitt at January 23, 2004 12:29 PM  Subscribe in a reader


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