This week is all about short term and long-term goal setting
On Monday we chatted with Shane where he gave an overview on how he's running things for his business and things we should all be considering
Today we're talking about short term and long term goals when it comes to lead generation and client lifetime value
1️⃣ Short term vs long term offers
You're running an offer for your business and when people come in on this offer they're probably not thinking long-term. They're coming in because they want results in the time frame you've promised them. This is why we have Front End Offers - something to get people in through the door so then you can try to secure them into something more long-term. For us, we offer a 6-week programme which is short-term and then convert them onto our monthly programme. Anything between 12 and 16 months is our average lifetime value of a client. So, consider what you will have as your short-term and long-term offers.
2️⃣ Costs and pricing
First the short-term is the cost of the lead and sale. Then, once we know the long term success of a client - this tells us the long-term profit. For example:
Short term you may spend £3 on a lead and £50 on a sale. Therefore, in the short term if they only stay for 1 month and the programme was £100, your short term profit is £47.
However, if they stay for 12 months on a £100 a month programme...you know your long-term profit is £1147. These are important things to consider when it comes to lead generation 🙌🏻
3️⃣ Onboarding process
We've talked about leads, front end offers and clients staying long-term. Now we need to talk about the onboarding process. This is split into 2 different things:
1) People on the FEO - what is the onboarding process? Do they get a welcome pack? A t-shirt? A course to guide them...consider this the short term element
2) Client lifetime - that 6 week to 12 month period. Do they get new challenges every month? Do they get a t-shirt once they reach 1 year. Try to think of ways you can keep them engaged, focussed, and on-board.
4️⃣ Spending - when you're running a gym its great to buy multi purpose equipment. A rowing machine really only has one function. However, a squat rack allows you to squat, shoulder press...any sort of barbell off it. It's the same for kettlebells and dumbbells. They have multi purpose uses and these are long-term fixes.
A short-term fix could be Halloween. We're getting ready to run a fun event and we want to purchase some decorations. We're then considering the spending on this. Is it worth spending a lot on a short-term Halloween event when these decorations are rendered useless the following day. Of course, you can save them for next year - but don't go over board!
Plus, when it comes to talking about spending....don't forget how important it is to save for your tax, your VAT and any other unexpected things that may crop up
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So, those are 4 things we should really consider when planning short-term and long-term goals for your business to not only make sure you get clients on-board but are also able to keep them for as long as possible 🤙🏻
David :)
