2. Data of a service business
â—Ź 1323 customers
â—Ź Total Sales: $2,369,759
â—Ź Avg order size: $1,791
â—Ź Multiple products at different price points
3.
4. For $997-point:
426 customers for a
total revenue of
$424,700
(+/- 25% Margin of error)
$363,905 Revenue
opportunity!!
Only 61!!
9. Profitable Chasm
â—Ź The optimum amount which your customers need to
spend with you are leaving a “hidden” $1,429,205
revenue opportunity on the table
● Profitable “chasm”: $2,500
â—Ź Your profit pocket is the $50,000-$100,000
15. Recap
● A “hidden” $1,429,205 revenue opportunity on the table
● A Profitable “chasm” $2,500
● The “hidden” profit pockets are the $50,000-$100,000
16. Recommendation
â—Ź Improve the CLV of 1,213 existing customers whose is
below the Profitable “chasm” of $2,500
â—Ź Architect new offers in the $50,000-$100,000 range