How’d that Happen? Customers, Sales – But No Profit!

“What you don’t measure, you can’t control.”

–        Edwards Deming (SPC, Taguchi method, 6 sigma)

Are you measuring your business?

• Number of prospects you have
• What you conversion rate from prospect to client/customer is
• Average $$$ per sale
• No. of transactions over a specified period
• Your margins
• Lifetime value of a customer is = (# of clients * amount purchased each time * number of purchases * percent markup * attrition rate)/# of clients

Once you know the above, you know your business – whether you are an attorney, a financial planner, a web designer or a marketing consultant.  And once you know the lifetime value of a customer, you can leverage your business immediately.  How? 

Here’s an example:

 Let’s round down to $700        Divide $700/$250 = 2.80

This means you could raise your advertising and marketing budget by 2.8 times right NOW and still break even.  If you are making less than $250 profit per customer, you won’t be in business long!   

 
Now the question becomes HOW TO INCREASE YOUR LIFETIME VALUE OF A CUSTOMER SUBSTANTIALLY and QUICKLY?  We can answer that by contacting us for a FREE 41 minute Consultation

Click here to schedule your FREE Consultation,
or call 513-833-7966, or email Ted@TedLeithart.com

We locate Windfall Profits within your business and turn these into and additional streams of income.

The Leithart Group, LLC
Turbocharge Your Business Now
9276 White Pine Drive, Loveland, OH  45140 USA
www.tedleithart.com     Ted@TedLeithart.com 

                                          Phone: 513-833-7966