“Work for yourself,” they said. “You can set your own schedule.”
“Start a business,” they said. “You will always have job security and build wealth along the way.”
So, small business owner, it’s the last week of July. Have you taken a vacation this summer? If not, why not?
If your reality is feeling overworked and too tied down to take time off, being a small business owner is suddenly not all it was cracked up to be.
Every Thursday this month on the Savvy Blog, we’ve discussed the freedom associated with having people and systems in place to keep your business operating in your absence. Last week, the nicest credit card guy on earth educated us on best practices for non-cash transactions by small businesses.
Today, we look at how to leverage CRMs and marketing automation to boost sales every day…even on days you’re out of the office.
“Dating doesn’t stop when you’re married. Marketing doesn’t stop when you make a sale.”
~ Ryan Deiss, CEO, Digital Marketer
Your customer database is one of the most-important intangible assets in your business. It’s vital that customer records be accurate.
Every time you make a sale, capture your customer’s contact information. If they’re a repeat customer, ask to update their contact information.
How? It’s really simple. Ask.
They’re already handing you their credit card or cash. Trust cannot get any higher than this. Leverage the moment to pave the way for more sales. Ask for their contact information. Ask them to post a positive review on a social media site. Ask them to download your loyalty app. Ask them to refer a friend. Ask anything; just ask!
The object of asking is to lower your CAC (customer acquisition cost) and increase your profit margin.
CAC is the average dollar amount spent to get a customer to make a new purchase. Let’s say you invest $1000 in Facebook ads next month, and you pick up 100 new customers from those ads. That averages to $10 per person in customer acquisition costs.
Is this good or bad? It depends. What is the average sale? If you’re investing $10 per person to sell a $5 pin, you’re bleeding money. But, if you’re selling a $100 print, this looks more profitable.
On the other hand, what if you had a list of customers who already own something from your store and that list is segmented by customer preferences? You could send a series of emails announcing a new shipment of their favorite product…a special price for being a loyal customer…or an exclusive “by-invitation-only” after hours shopping spree. The only people who get these emails are qualified buyers who have shown interest in similar products in the past.
Email marketing that is personalized and relevant yields great results. The CAC is much lower than other forms of paid promotion, too, because you’re marketing to people who already have a relationship with you.
When you lower the cost of making a sale, the savings falls right to the bottom line, and you make more money.
Plus, you can automate all the minutiae of collecting payment, processing the order, scheduling fulfillment, sending customer satisfaction surveys, and launching a new customer welcome and orientation campaign…none of which requires you to be in the office to execute!
This would free your time to work ON the business and not IN the business. You would be free to concentrate on the parts of your business you enjoy most. Your time could be spent doing the activities that drive sales and profitability. You could take a weekend or week off.
Marketing automation, combined with a smart sales system and a monthly ad budget, opens the door for people who want to build a business that offers more wealth and demands less time.
Do you want to explore ways marketing automation can work for you? Let me know through the contact page.
