Huang: Network Marketing strategy Skills (iv) How much does your customer cost?

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Do E-commerce, you must do a good job budget, 80% of the electricity dealers died of capital turnover, especially small and medium-sized E-commerce Enterprises, there is no accurate calculation, want to succeed, is absolutely impossible. To achieve this goal, you must understand 2 very important data.

Cost per Customer

If you add up all the money you spend in electronic marketing, then use your new customer number to get rid of this sum. For example, you put a 2000-dollar advertising fee into your target audience, and you end up with 15 customers. This means that each customer's cost is 2000/15=133.33.

Suppose that the profit of each product is 120 yuan, so many people will say, this marketing is a failure, because I earned only 1800 yuan, counted up also lost 200 yuan. But when you have calculated the value of the customer, the point of view will certainly change.

The value of each customer

In the above case we have calculated the cost per customer is 133.33 yuan. The customer's first turnover is 120 yuan, I see it is a loss, but the next thing you have to do is to calculate the average customer value of how much,

Multiply your average transaction amount by the average number of transactions per month, multiplied by the average customer's spending time in your business (year/month), and the result is the average value of the customer. For example, the average price of each product is 50 yuan, each customer for 2 consecutive years, each year will buy 2. Then the average value of a customer is 120+50 x 2 x 2 = 320 Yuan.

Balance

When you calculate the cost and value of each customer, you will know how to improve your performance.

Yes, all you have to do is try to improve your average customer value and reduce the cost of developing new customers, and when we look at the deal again, Although each customer cost is 133.33 yuan, at the beginning we only earned 120 yuan is deficient, but the customer's final average value is 320 yuan, therefore in the long run, still is earns money.

To sum up, do e-commerce marketing, must be the customer's value and cost calculation clearly, so you can better plan the effective marketing strategy. More Network marketing Skills please go to (http://www.hcsem.com/) the author of this article: Network Marketing talent Huang