One of the most exciting ways to bring in new business is to go after new leads. Everyone loves and focuses on the Before Unit. But when time and resources are limited, you can sit back and take a moment to figure out where your biggest assets are.
Where is your low-hanging fruit?
You might be surprised the After Unit is what gives you the biggest yield. Chasing new leads is costly. You have to have a performing ad, you have to send traffic to it, and you have to convince your leads to buy.
All this takes time, money, and energy!
On the other hand, referrals and repeat business don’t cost you a thing. These people know you, like you, and trust you already. No convincing is necessary. No money is needed for ads… They come to you on their own.
To see how well you’re doing in your After Unit right now, there’s a valuable metric to know. It’s called Return On Relationship, or ROR for short. Here’s how you calculate it:
First, look at the number of people you have in your after-unit. All the customers that ever bought from you. Say you have 1000 customers. Then, look at the number of people you helped in the past 12 months. Let’s say the number is 250. You had 250 customers in the past year. Now ask yourself: How many of them are either repeat or referral customers?
Let’s say it’s 50. In the last 12 months, 50 new customers came to you as a referral or were repeat buyers. Look at those 50 people as a percentage of all your 1000 customers. That 5% is your Return On Relationship number.
Think about this…
For that 5% of all your customers, you didn’t have to spend a dollar to get a sale. You didn’t have to spend time on the phone convincing them to buy. They just opened your door with their wallets (and minds) open. Imagine if you could double or even triple that 5% ROR? What would that do to your business?
But here’s the best part.
When you start thinking about maximizing the relationships you already have, the money you’re currently spending in the Before Unit to acquire new people becomes a multiplier… And every new person that you add to your list is worth that much more!
This is where things change exponentially for you. You start playing on a whole new level! If you want to discover all the different ways you can optimize your After Unit right now, just head over to MoreCheeseLessWhiskers.com podcast,
pick the first episode, and start listening. Then, grab a pen and some paper to calculate your ROR number. Do you feel it’s too low? Can you think of ways to increase it?
Let me know!