My friend Mike started a college counseling business this year. He's
doing well–he's got 20 kids, he's busy, and most
importantly, he's enjoying himself.
I saw him today and he
lamented that he wasn't being as diligent in his marketing efforts as he
should be. He's just too busy working with his existing client base.
Forget about marketing. I told him to take the
time and money he would have spent chasing new business and spend it
instead on giving his current customers an even better experience.
is exponentially more expensive to find and sell a brand new customer
than it is to secure repeat business. All of those customers have
friends they could refer. A lot of them have younger children. And
since they're your customers already, you don't have to spend time and
money to find them. Just spend the money to keep winning them over.
Here's how that math looks. Let's assume your program costs $2500.
You get 1 customer @ $2500 and work like crazy to delight them…..$2500
That family has a younger child who later enrolls with you……..$2500
The family also refers two of their friends ……$5000 ($2500 x 2)
Each of those families refers one of their friends….$5000 ($2500 x 2)
One of those referred families later enrolls a younger child…..$2500
one of your existing customers who paid you $2500 could actually be
worth close to $20,000. What would happen if you ran a program that
made all of your customers that happy?
You wouldn't have to worry
so much about finding new business. And you'd have a constant stream
of referred prospects who are predisposed to like what you do.
You're still marketing–you're just doing it to your existing audience.