The real value of your business is mostly in the After Unit…
In other words, your biggest opportunity is in building the list of people who bought from you once, and then make them keep coming back. And refer other people to you…
That’s why it’s important to know your After Unit metrics. Or, as I call it, your Return On Relationship (ROR) number.
You measure your ROR in two different ways...
Let’s say you’ve got 12,000 people who bought your product or gave you money in exchange for your service.
The first thing you want to know is, how many of the twelve thousand made a second order? How many of your total customers came back for a second time? And then, what you also want to find out is, how many of the total second-time orders happened in the last 12 months?
That number, the second-time orders in the last 12 months divided by your total number of orders in the last year, that’s your current Return On Relationship percentage. This is what Profit Activator 7, Nurture Life Time Relationships, is all about.
But there’s another metric you want to know… which gives you your ROR from a slightly different perspective.
And that is: How many new people did your existing clients refer or introduce to your product in the last 12 months?
The bad news is, unless you have specific strategies in place beforehand, that second number is going to be difficult to measure. But the good news is, Profit Activator 8 - Orchestrating Referrals - will show you how to fix your referral strategies so you always know who refers who and by how many.
The bad news is, unless you have specific strategies in place beforehand, that second number is going to be difficult to measure.
Now, here’s the best part…
Once you have your ROR fine-tuned to the maximum. Once your repeat orders jump to, say, 25% and stay there consistently. And once your referral orders equally jump to, say 25%… What’s going to happen is, your Customer Lifetime Value will shoot through the roof!
Which means that now, you can easily go back to your Before Unit, open the floodgates all the way up….
And know that your business is going to thrive.