Do you run your business like an investor would?

A new customer is similar to a newly acquired asset in investment terms.

You acquire them as a result of your sales and marketing efforts, so their initial value comes at a cost. It might be profitable, break even or at a loss to just get them on board (especially consumption based customers).

Most business owners want maximum value at the initial transaction, to cover that cost of acquisition. What they’re forgetting is that after the first sale, they have a new asset “class” in their customer base.

This customer has a value today, but they also have a value in the future. Their lifetime value.

The true profit comes from maximizing it.

When you optimize your process for the “yields” - the second, third and fourth transaction - you’re thinking like an investor.

Because there is no longer the cost to acquire, and the asset is paying dividends.

When you forgo maximum profit at the initial transaction, your sales and marketing abilities shift.

If you’re thinking in terms of lifetime value and your competitor is only thinking transactionally, you’re playing a different game. Your marketing budget becomes your investment strategy. If you break even on the initial investment, you’re acquiring customers for free, and the returns come in later sales.

This gives you a unique advantage when it comes to running campaigns…

Which leads to more new customers, which leads to more opportunities to profit in the back end.

If you’re only operationally equipped to manage the initial sale, you’re leaving money on the table.

And when you consider each customer's ongoing technology needs, that can be a lot of revenue slipping away.

Not to mention it maximizes the ROI on that initial spend.

Even micro recurring transactions, like monthly renewals, add up.

Your ability to meet the continuing needs of your customer will impact their decision to buy from you again.

This has always been a solid business strategy, but with the shift to subscription/consumption based selling it’s now essential.

?To optimise the revenue potential of your customer base, you need the right platform.

A platform that automatically generates opportunities and quotes for upsell, cross sell, renewal, upgrade and end of life replacement after the initial investment.

Effortlessly driving your team to meet your customers ongoing needs.

With this in place, you can continue to focus on new customers, knowing that their value will be felt far beyond the first sale.