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Posts Tagged ‘Technology’

Lifetime Value Of A Customer

September 13th, 2009 No comments

Online shoppingIt’s no secret that one of the keys to creating a long term residual income with our business rests in creating a base of customers who consume products. Have you stopped to really think about this concept and to realize how important the lifetime value of each customer is to you? (lifetime value equals the total amount a customer spends over the time they do business with you) Once you have an idea of what this number look like you’ll begin to realize what just a 5% to 10% increase in retention of customers means to your business.

Research finds that repeat customers spend, on average, 67 percent more than new customers. (Source: Bain and Company) So how do you get repeat business and earn customer loyalty?

Take a lesson from many small businesses that long ago grasped the importance of building customer relationships. They nurture their customers through personal interaction and over time learn and remember individual preferences and interests. They keep in touch with customers on a regular basis ensuring their products remain “top of mind.” (Craig Bryson’s Nu View technology will absolutely impact this—to learn more go to craigbryson.com and look in NuLab)

Let’s look at a couple of examples. Take a customer who spends only $25 per month. That equals $300 on an annual basis. If they remain your customer for four years that means their value to you without any increase is $1200. Now, let’s look at what happens when they increase the amount spent by just 10% per year. At the end of four years they are now spending $33 per month or $399 annually. (33% more than when they started—isn’t compounding grand) As you grow your customer base to say 100 over the course of a year you’ll see the following results. Total revenue in those four years is just shy of $140,000.

Yr. 1 100 x 300 = $  30,000
Yr. 2 100 x 330 = $  33,000
Yr. 3 100 x 363 = $  36,300
Yr. 4 100 x 399 = $  39,900
Four Yr. Total $139,200

With the introduction of the new ageLOC products growing many of your current and new customers to the $100 per month level becomes a real probability. Even if only 5% – 10% of your customers do this you can see what potential exists. Now duplicate this 5, 10, 20 or more times in your organization and the numbers become pretty impressive.

So the next time you look at that $25 sale to a new customer don’t underestimate what their true lifetime value means to the growth of your business and income.

The Future Is Now!

September 10th, 2009 No comments

network montage imageIf you’ve been following any of the activities of the Nu Leadership Network or the launch of craigbryson.com you certainly understand that something very special is happening. Today marks the introduction of another piece of the ecosystem designed to take all of our businesses into the future. (Those at the August conference got an early preview)

As the saying goes this is not your father’s same old network marketing business. Indeed, what Craig Bryson and his technology team have put together is a set of remarkable technologies enabling distributors to communicate in ways that have only been dreamt about before. I’m not going to try and explain how the technology works, because you really have to experience it to begin to understand the impact and potential. I will say that in my 15 years of working with the Internet, that with out a doubt, the Nu View Network Connector technology is one of the most powerful marketing tools I’ve seen and the beta version is now available to all Nu Leadership Network members.

What does this do for us as distributors? Craig puts it in perspective when he says that the Nu View Network Connector “puts information in front of people where they already go.” This includes social networking sites like Facebook and company sites like nuskinusa.com. The potential for how this applies to our business is limitless. It includes new ways of communicating with team members, increasing retention, and the overall strength of your Nu Skin organization. Add to that the ability to market to customers and stay in touch with former distributors and you begin to understand how application of this tool can magnify your business as never before.

I encourage you, regardless of your technical knowledge or comfort level, to get started today learning how these new tools and sites benefit you. First, register to be part of the Nu Leadership Network and craigbryson.com. Then listen to Craig’s blog talk from September 10th to get a good overview of the market trends and new technologies. To listen to his blog talk click here. What’s important is to stay connected, explore, experiment and increase your understanding every single day.

You really can’t afford not to—because the future is now!