Do You Know The Value Of Each Visitor?
Keywords: business, sales, visitors
The success of any store that sells products or services relies heavily on traffic. Whether walk-in, telephone, or web site visitors, each person that in some way contacts you has a value to your business. Yes, even the problem people, the random visitors, and the tag-along husbands have a value.
Being aware of how much each person is worth in dollars is extremely important. This will help you maximize your income while minimizing your marketing expenses.
Most business owners do not take the time to determine the value of each visitor. Why? Because business owners may be experts in furniture, hardware, plumbing, or teeth, but they hate the paperwork side of business ownership.
Let us take a look at a quick and easy way to assign a dollar value to each person who calls or visits your business. And how it can increase your income this year, as it has for so many others.
Very simply, take the total sales each week. Divide it by the number of people that visited and called you. This assigned value will become more accurate and more important each week. You add this week’s visitors to all previous visitors, and this week’s sales to all previous sales.
If you have a walk-in business, such as a furniture store, put a traffic counter on the door. If your door is used for both entry and exit, divide results by two to avoid counting the same people twice.
Keep track of the phone calls too. Have a pad by the phone to record the name and phone number of each caller. This is just good business sense. You, no doubt, are doing this already.
Now, for example, let us say that for the month of May you had 3000 walk-ins and 500 phone calls. Add these together for a total of 3500 visitors. Your sales for the month was $33,000. Divide $33,000 by 3500. You have now established that each visitor is worth $9.43 in gross sales.
Now you have an accurate way to measure your in-store marketing strategies. You can quickly see the results in the rise or fall of the “per person” value in sales. These tactics might include how you arrange your merchandise. Also, suggesting additional items that will complement the visitor’s purchase. Also, setting up specific displays with colorful signs or banners tied in with special or seasonal themes.
Be creative. Scout out your competition and similar stores in other towns. Here are a couple proven strategies that are very effective.
Hamburger stores have found that offering a “super-size” package dramatically increases the per person value. They have found that it is much easier to get additional money out of people who are already committed to spending money with you than to sell a new customer.
One grocery store, when setting up an Italian dinner display, will include all the accessories in the display. Wine from the liquor department, French bread from their bakery, and Parmesan cheese from the dairy department. The customers love it and it dramatically increases sales.
Ok - you have optimized your in-store marketing. Now you can look at buying more traffic with external marketing - such as media advertising.
But, before you spend a penny, you need to take the “per person” value one step further. You need to establish the per person gross profit.
The average percentage of profit needed to stay alive may vary from 200% for a jewelry store to 2% for a grocery store. Most stores and service businesses average around a 40% margin. We will use 40% for this scenario.
Let us say you have increased the per person value to $14.90 gross sales by fine-tuning your in-store marketing. Your margin of profit is 40%, so each person is worth $5.96 in gross profit. Now you know for sure you cannot spend more than $5.96 per person to profitably bring them into your store.
For example, you spend $1000 on a TV advertising campaign. It increases traffic by 200 people. You have spent $5.00 per visitor. The advertising paid for itself, but barely shows a profit. Your next marketing effort may be a $1000 newspaper program. It brings in additional 300 visitors. You paid only $3.33 per visitor. This would be quite profitable. Obviously, this is one marketing plan that you will want to repeat over and over again.
Additionally, knowing the value of each person in gross profit will help you eliminate expensive junk marketing. Junk marketing includes advertising on phone book covers, posters, maps, and the like. In fact, yellow pages are quickly becoming a poor investment.
For example, a salesperson asks you to put an ad on a fishing contest poster. Quite likely, it may only bring in one or two visitors, if any. You wisely determine that the most you can spend on this would then be about $12. Anything more should be considered a donation, not a marketing investment.
Numbers not your cup of tea? Follow the example of Henry Ford. Do only what you do best, and wisely hire out the rest. Train and empower a family member or fellow employee to become essentially involved in the success of your business. They can take care of tracking the numbers and you can do the brain work.
Establishing a value for each visitor is simple. It is essential. It is powerful. It puts you in total control, no matter what the economic cycles throw your way. It gives you a way to measure the value in dollars of every new marketing idea you implement.
This article was published by Hans Hasselfors, from www.SubmitYourNewArticle.com. Get the net working for you. Join a community of like-minded authors and publishers and make your living online. Become a member of our article directory: www.SubmitYourNewArticle.com
Previous Articles Highlighter:
How To Build A Good Customer Relationship With Web Internet Marketing (1)
The point is to not only grab their attention and hold it but to let your website become familiar and comfortable to them. Once you do this, the buying a product stage gets easier to people.
A Brief History Of Search Engines (2)
It was called Archie. Its purpose was to search through the information available on the FTP servers. The files on these servers were available for anyone, but one could not use them unless knowing the exact address of the server and of the file.
Internet Access With A Side Of Fries (3)
Several UK McDonalds locations are now offering free WiFi access to complement the fast food giant's entry into the elite group or restaurants that combine food and drink with IM, video streaming, and email.
What Makes Private Label Rights A Success (4)
Want to read more on Private Label Rights? Head over to www.Privatelabelrightspack.com 's article archive and check out the growing archive articles. You can also find tremendous deals on great PLR products at plrpack.com
Affiliates And Affiliate Marketing Mentors (5)
And also they have ability to guide you and help you boost your profits. 4. They can help you develop these traits, such as persistence, patience and thirst for knowledge to help you getting ready for take further challenge, because attaining success in affiliate marketing requires sweat, blood and of course, hefty time commitment.
The SEO Marketing Promise (6)
So if you are signing up with a top level firm with a reputation to back it then you can be rest assured that they will back up what ever they promise to deliver in the SEO package and within the mentioned time frame.
Two Basic Parts Of A Low Cost Web Site Promotion (7)
The second money-saving website promotion is ranking. This refers to the numerical position in which your web site appears on a search engine, based upon the website's design criteria.
Semantics And SEO For Successful SEM (8)
These programming languages have increased the usefulness multifold for the web. If you use only HTML then it will not be possible for the search engine to produce useful links for keywords like graphic designers in Florida.
Make Money Online Survey (9)
Besides learning new techniques, you'll also get a much better idea of how to market to your target audience. 6. Survey people wherever you go about their consumer interests.
4 Steps In Information Sharing (10)
At the end of the day, all this will generate sales or increase revenue Well! These are some of the benefits that you will derive through information sharing but it is not as easy as it seems.
Off Page Optimization: Analyzing Competition In SEO (11)
Of course there are other tools available online, which have the same capabilities of being able to break down the various keyword density elements. The only advantage is that Total Optimizer Pro offers a detailed analysis of the various external SEO factors involved in competition analysis.
What Does Your MLM Prospect Want To Hear? (12)
You need to be able to tell your prospect about your training and your lead generation system, whereby your prospects come to you. People who are genuinely interested in what you are selling.
Search Engine Optimization Marketing For Google Update (13)
Method for counting backlinks According to the Google update, the history of the links on your site will also get importance while determining the page rank. According to the Google update, the sandbox regarding links are functioning in parts and after a certain period, the links will gain a considerable part of their weight, and after some more time, they will gain some more weight and it will go on.
What Exactly Is Affiliate Marketing? (14)
Next time we will look a little deeper into Affiliate Marketing and explore some of the different marketing plans that provide you the best financial benefit. Rick London is the owner of www.affiliatesuccessbuilder.com and has written numerous articles about Internet Marketing and Affiliate Programs.
Power Your Online Home Business With A Marketing Plan (15)
I have done it simply with these tools: I plan my marketing and every single promotion. The target is of course in the main role. Then I analyze the results and ask myself: why the results are like they are?
The Evolution Of Domain Names (16)
Topics: internet, income, domain, job, internet business, planning, money, advertising, business success, offline There are a number of people today making their living from the internet, whether doing it through making $50,000 a year or alternatively through making $5 million a year they are still generating the income that they need to survive in a primary sense from their activities on the internet.
On Page Optimization: Analyzing Competition In SEO (17)
You will also have to position the keyword and the entire content with respect to the page code. A special format helps in positioning specific content and displays them as important with respect to the rest of the content.
Mistakes Are Useful For The Online Home Business Owner (18)
2. Is Mistake A Right Term? What is a mistake? Is it a zero result from the online home business promotion or what? Well, if your campaign brings no result and you know why, it is a greatest learning you can imagine.
Get Power To Your Home Based Business (19)
Plan The Use Of Your Optin List. This is your fanclub, your warmest market. It needs a special plan,because these people have subscribed your newsletter voluntarily and are eager to get information to run their home based businesses.
How To Sumbit A Press Release (20)
They could publish your release word for word or write their own story based on the information you submitted. In the online world, a press release brings you traffic when you submit your release to a distribution service.
Newer Articles Highlighter:
SEO As An Internet Marketing Strategy (1)
Once you have taken care of making your site search engine friendly, you will need to start working on its authority. Authority is increased as more and more sites link to your site.
Ideas To Keep Visitors Coming Back To Your Website (2)
You can host your forum from your site, or choose to use a third party forum, whatever your prefer. Both have their pros and cons, it just comes down to what is best for your business.
Keyword Strategy For The Best Home Based Business Ideas Web Site (3)
When you plan the home page of your best home based business ideas, select about 10 keywords, which are related to each other. This means, that the root word is the same.
Tips On Home Business Marketing (4)
You will still want a professional website to serve as an online brochure and for some reason many people have the opinion that an online presence increases the credibility of a business.
Guard Corporate Identity On Different Search Engines (5)
But things are changing rapidly. Today if someone has a little bit of technical knowledge and a computer then they can attack your corporate identity successfully and publicly. The question is how can you fight this menace?
Promoting Through Search Engine Ranking With Non-Reciprocal Link Building (6)
It is easier for search engines to detect reciprocal links. The second advantage that a non-reciprocal link will have is that they will not be monitored the way most reciprocal links are.
Easy And Best Home Based Business Ideas (7)
B. Find Your Talents. Running the best home based business ideas is built by an expertise. Your personal expertise. It means that you as the online business marketer have found out, where you are good at.
Understanding Google Page Rank Update (8)
Remember that any SEO strategy needs to follow a common sense approach and not just feed google what you may think it will like. Moe Tamani is search engine optimization specialist for SEO 1 Services links www.seo-1-marketing-services.com www.seo-1-marketing-services.com www.seo-services-expert.com
How To Yield A 7% Sales Increase With An Incredibly Easy Redesign (9)
So Michael was pretty satisfied with his clear, graphical web design. Upon entering the home page, the visitor was met by three big, fat, colorful "buy now" buttons - one for each product - neatly lined up next to each other.
Corporate Gift: Branding Your Company With Corporate Gifts (10)
Branding a company through corporate gifts is definitely a proven marketing method. Other than cost-effective (provided budget is well-kept), it is also a good way to create a lasting impression in other people minds if your gifts are unique and creative enough.
SEO Is Key To Success On The Internet (11)
While the acronym SEO is bandied about with abandon by gurus and would-be gurus, most Internet marketers have little idea what it means or where to start to get their site in shape to be in the top 10 of search engine results pages.
Use Fundamental Marketing Tips For Great Success (12)
Disperse Mistrust Inspire customer confidence in your business and prevail over possible feelings of mistrust by offering written guarantees of satisfaction when or if possible. In addition, you could show customer testimonies if possible.
The Use Of Google Reader For SEO (13)
Since the Google Reader is easy to use and is considered a powerful tool; it will be helpful for anyone and everyone who wants to keep themselves updated on any kind of news from forest fires in the tropical rain forest to Premier league soccer scores.
6 Viral Marketing Ideas To Get You Started (14)
The action that you require should be simple and obvious as well. Don't make things complicated or it will confuse the reader, such as by adding numerous links. Remember the K.I.S.S.
The Distinction Between Features And Benefits (15)
You can attain this by making it sound like a written conversation involving you and your customer. Using a more personal approach will make your prospect feel special and that you are addressing them directly.
Knowing Your Audience & How To Make Them Buy From Your Site (16)
You can also offer a money back guarantee so that people will feel confident about buying from you. How about after sales support? Who do they contact when they have problems after purchasing?
3 Steps To Setting Up A "Refer A Friend" Marketing Program (17)
In this form, word of mouth marketing costs almost nothing to implement, and if your business is continually recommended, it, obviously will continue to grow. There are several forms that this marketing by referral program could take.
Use Articles To Advertise Your Website (18)
This additional opportunity to promote your business can ultimately assist your position in search engine rankings through link popularity. The articles you write will have your signature box at the end of it, which is where you will put your website link.
CPanel Is The Right Choice For Web Hosting Services (19)
Without a doubt. It offers the end user everything necessary to be successful in setting up and maintaining a workable website and it accomplishes it with a minimum of fuss.
The Importance Of A Salesletter (20)
sound familiar?" They work because they empathize with the reader's needs, problems or desires. The Internet is like a very busy freeway and everyone's in a rush. Only a strong headline like that in big, bold letters will stop your target audience dead in their tracks to read through your salesletter.