Small Business New Customer Marketing Math

Writen by Don Osborne

For most small business owners acquiring new customers is a top priority. You hope your marketing efforts will bring in more than one customer at a time. Chances are though, you count new customer additions one at a time: 1 + 1 = 2. Done correctly, it's possible for your small business marketing efforts to use a multiplier effect so your new customer math is 1 + 1 = 3. What is the multiplier effect that creates this new customer math?

The multiplier effect is the leverage you gain from how you acquire each new customer and what they do with the satisfaction they receive from doing business with you. In a word, "word of mouth" referral gives your new customer the opportunity to add a new customer. For example, new customer number one buys and refers no one but the next new customer buys and refers someone who also buys; three new customers.

The new customer math formula: 1 + (1 + 1) = 3.

To take advantage of the new customer math you must give your customers the tools they need to make referrals. The word-of-mouth referrals they provide might be made directly by them to someone they know. One tool to provide them with is a list of testimonials you might include in your small business marketing literature. Another tool for direct word-of-mouth is an item imprinted with your logo or marketing message imprinted on it such as a calendar or coffee mug.

A current customer could participate in your small business new customer math by providing referrals directly to you with their permission to use their name when you contact the referral. Your contact could be a phone call or a letter. A secondary way to use the a satisfied customers is by including their testimonial in the small business marketing literature you use directly with potential customers.

The difference between new and old customer math is the power of a current customers word-of-mouth direct or indirect testimonial. Build your small business marketing around your customer's satisfaction. What you have to say about your small business products and services is one a 1 + 1 = 2 form of marketing. What customers have to say to another potential customer is the new math of 1 +1 = 3 or more. What are you doing to ensure your small business marketing efforts are based on the new math?

Free 32 Ways to Maximize Your Profits Check List. Don Osborne authors The Profit Puzzle course to help you plan, finance, start up, run, grow, sell your small home based business ideas. Visit http://www.profitpuzzle.com for articles covering objectives, management, finance, personnel, marketing, operations, production and resources.