Carol Roth Blog
This blog features Carol Roth's tough love on business and entrepreneurship, as well as insights from Carol's community of contributors.
 

A Small Customer Base Can Still Generate Big Profits

 

Baseball Fans Reaching for BallYou may have the impression that you need to have a ton of customers to make big bucks. And while having lots of customers is great, you also can be quite successful with a small but engaged customer base.

In Carol’s recent post on entrepreneur.com, “How to Make a Lot of Money With a Few Customers,” she shares some tactics for generating more money from current customers, and some suggestions for staying front of mind. Carol begins:

“I wear many professional hats, but one of my favorite ways to work with clients is to help them monetize their customers. And, while I work with some of the largest brands in the world, I derive a lot of personal satisfaction from smaller clients — the ones whom I have helped make millions with small, niche customer bases.

So, how do you get to six- or seven-figure success? Here are some of my secrets.

Do the math.

How many active customers do you have? For every thousand customers, for example, every $100 worth of products or services that you sell them per year nets you six figures and every $1,000 you sell gets you a million dollars in revenue for the year.

Now, that may seem like a lot, but $1,000 a year is less than $100 a month or $25 per week, so work out how often you need your average customer. This helps you to re-focus your business strategy and tactics.

You may have higher-priced services or products or a smaller customer base, but doing the math gives you a good benchmark to work from.

Customize your offering.

Once you know how much and how often you need your customers to buy, make sure you have enough products or services for your customer to be able to hit those target numbers. If you don’t, or if you want to amp up your numbers, think about what ancillary products or services you could bundle with your existing ones or whether there’s something you could add to your overall offerings.

Then, get creative (the fun part). Create limited special offers for your customers. You can have exclusive items or services, special deals or products that are available for a limited time or even by lottery.”

You can read the rest of the post here.

Article written by
Catherine Morgan is the editor of Business Unplugged ™, an engaging speaker, and the founder of Point A to Point B Transitions Inc., a virtual provider of coaching services to individuals who are in business or career transition. Catherine is the author of the eBook Re-Launch You: Discovering Your Point B and Embracing Possibility. An experienced independent consultant and former employee of three of the former Big Five consulting firms, Catherine combines strategy development with accountability coaching. Her productivity tips and career transition advice have been featured on WGN AM 720 and WIND AM 560 The Answer in Chicago, and on WCHE AM 1520 in the Philadelphia area. Catherine speaks frequently on topics related to productivity, career transition, small business, and entrepreneurship. She doesn’t take herself seriously, but takes her subject matter very seriously.
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