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What Are The Benefits Of Fixing TheLeaks

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Section II of the Fixing The Leaks Workshop Series reviews the first Steps in the Fixing The Leaks Process and how your organization will benefit from the process.

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What Are The Benefits Of Fixing TheLeaks

  1. 1. Section II “You've got to be very careful if you don't know where you are going, because you might not get there.” - Yogi Berra Copyright @ 2010, Ronald D. Ryan 1
  2. 2. Typical Customer Flow You Need To Model This Online Sales Process In-Store Sales Center Fulfillment & Service Repeat Purchase Copyright @ 2012, Ronald D. Ryan 2 Internet Off Line Advertising What Are the Benefits?
  3. 3. Copyright @ 2010, Ronald D. Ryan Key Concept #1 Know Who Is Leaving And Why: Knowing the number of customers who visit your store(s) or site(s), convert to sales, and make repeat purchases is important. Understanding how many you lose at each step in the process and why, critical. 3 What Are the Benefits?
  4. 4. Improving These Metrics = Easy Money… Sales Center or Retail Store 1 in 4 or 5 buy Conversion and repeat purchase rates shown are for discussion purposes only. Rates in your business will vary by product, process, customer type, time period, and season. Fulfillment & Service 8 or 9 out of 10 Keep What You Sold Them Repeat Purchase (Or Renewal) Between 5 and 9 Out of 10 What Are the Benefits? Copyright @ 2012, Ronald D. Ryan 4
  5. 5. Key Concept #2 Complete The Circle: Improvements in conversion and repeat purchases have a huge impact on profitability. Copyright @ 2010, Ronald D. Ryan 5 What Are the Benefits? Copyright @ 2012, Ronald D. Ryan
  6. 6. Repeat Purchase Cycle Online Process Sales Center Or Store Fulfillment & Service Repeat Purchase Copyright @ 2012, Ronald D. Ryan 6 Most People Call, Drive or Log on to Make A Repeat Purchase. But Not Always From You. What Are the Benefits?
  7. 7. Examples of businesses improved by subscription model: Business Example Vertical (Likely) Victim Netflix Movie Rental Blockbuster Video Diapers.com Baby Products Local Retail Grocery Store Dollarshaveclub.com Men’s Grooming & Toiletries Local Retail Drug And Grocery Store Lensdiscounters.com Vision Care Local Retail Vision Care Petflow.com, mydogbowl.com Pet Food Local Retail Pet Food Surfair.com Repeat Airline Travel Commuter Flights between large cities Copyright @ 2010, Ronald D. Ryan 7
  8. 8. Most Profitable Repeat Purchase Cycle Online Sales Process Fulfillment & Service Repeat Purchase For most companies, online or automatic repeat sales are the most profitable sales of all. What Are the Benefits? Copyright @ 2012, Ronald D. Ryan 8
  9. 9. Key Concept #3 Angry no more: Moving repeat sales online lowers acquisition costs, increases customer satisfaction, and improves profits. Copyright @ 2010, Ronald D. Ryan 9 What Are the Benefits? Copyright @ 2012, Ronald D. Ryan
  10. 10. Story Problem: A. If each visitor to your site costs you $5.00 to attract, and for each 20 visitors you sell one product, what is your acquisition cost per customer? B. For extra credit: You improve your web site. What is your acquisition cost per customer going to be if you sell 1 customer for 10 visitors? C. Double extra credit: What if you buy 25K leads per month and the cost of improving your web site above in B is $100K. How long will it take you to make your $100K back? What Are the Benefits? Copyright @ 2012, Ronald D. Ryan 10
  11. 11. Story Problem: A. If each visitor to your site costs you $5.00 to attract, and for each 20 visitors you sell one product, what is your acquisition cost per customer? Answer: $100.00 B. For extra credit: You improve your web site. What is your acquisition cost per customer going to be, if you sell 1 customer for 10 visitors? Answer: $50.00 C. Double extra credit: What if you buy 25K leads per month and the cost of improving your web site above in B is 100K. How long will it take you to make your $100K back? Answer: 1.6 months. What Are the Benefits? Copyright @ 2010, Ronald D. Ryan 11
  12. 12. Key Concept #4 Easy Harvest: The ROI from changes that improve conversion and repeat purchases is often very high. The time to payback is very short. Copyright @ 2010, Ronald D. Ryan 12 What Are the Benefits?
  13. 13. Why Study The ‘Leaks’ - Deeper Understanding of Customers Higher Customer Satisfaction Higher ROI Lower Acquisition Costs Higher Profits What Are the Benefits? Copyright @ 2012, Ronald D. Ryan 13

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