Single Transactions VS Lifetime Customers

Hello, my friend and future millionaire. 

Welcome to this episode of The Money Wheel. 

My name is Andrea Koput. 

I’m going to get straight to it: Why do you think you have customers? 

Why do you think you have butts in the seats? 

If you think you have a customer, you really need to think about it because there is a situation that has been happening since the beginning of time: customers versus transactions, and why you think you have customers, and you’re probably wrong.

The initial sale or lead ( the like, share or view), the initial interaction you have does not create a customer. 

This is the first opportunity you have. 

This is the state. 

It’s a business versus pleasure mentality. 

Here are some questions to ask yourself.

Are they coming to you for a transaction?

Is this a commodity or is this a relationship? 

How do you know when you have a customer? 

How do you know when it’s just a transaction?

The answers are going to really depend upon where they are in the chain and how they found you. 

How do you know when it’s a transaction?: a transaction is just that, it’s strictly business – it is an in and out.  

It is going to the big box store to go get your milk and eggs. 

And you’re not going to the big box store.

It’s a commodity, it’s something you need.

You need it to live your life, but you’re not going there for the warm, fuzzy feeling. 

This is a transaction.

To depend on the single sale is the single fastest way to exhaust yourself. 

If you were depending on single sale culture, one sale, one and done retail, one and done e-commerce marketing – any of these things, you are going to exhaust yourself and your business and go broke. 

Long-term profits are made in the backend.

This means a profitable long-term business is made when you increase that customer’s lifetime value by return purchases.

That could be emails, referrals, affiliates, taking that customer and getting lookalike targeting, and data points to understand who your customer is, why they’re there and how to find more customers like that.

It means you must create the transaction into the customer. 

How do you do this? 

A customer is a relationship a moral agreement.

It’s an unwritten contract between two parties to treat each other with respect. 

One sale and one consult is a transaction. 

You needed it to be done. 

Changing this into a relationship by the honing and marketing and capturing of the transaction, by bringing them into a person that is looking forward to your emails, looking forward to your videos, your content, your valuable information. This is how you have a lifetime customer. 

This is what you want – lifetime customers – because they will come back.  

They’ll bring their friends, bring their family, talk about you and be that raving fan.

Single transactions will produce money, sales, and leads.

What single transaction culture does is this – you are always sprinting to get the next lead, to get the next sale, to get the next video, and it’s exhausting! 

A single transaction versus transaction – you’re molding them into the customer. 

Turn the one-offs into the forever family. 

Customers are a relationship between the retailer, the deliverer, the job, and every person. 

Now, how many of the people on your list, people in your group, how many followers do you have are transactions?

How many came for the immediate gratification? 

How many of them are customers that share and engage and really are related to this business?

How can you take those transactions and turn a percentage of them into lifetime customers? 

Not every conduction will come across there, but actively planning these transactional relationships into lifetime customers, that’s what you need to think about. 

How can you do that? 

How valuable would this be to any entrepreneur when they can turn their transactions into customers?

It’s very important to do this, because if you’re constantly spending your advertising dollars just to get people in the door, and then they’re leaving right away, you’re throwing that money away. 

It’s so much easier and it’s so much cheaper to bring them in and let them stay. You can be a good host and to cater to their needs.

Once you get over that initial hump when they don’t know who you are, you’ve got to establish that rapport.

If you have to do that every single time for every single transaction, it’s exhausting.

Once you get the rapport and the trust; the likability is there, where they know who you are, it makes it so much easier to get that next sale. 

The next part, with having customers as raving fans, is that it is the best thing ever, because you don’t even need to market.

They’re doing all the marketing for you, because they just tell everybody they know how awesome you are. It’s as easy as that.

If you have a couple people that do that for you, that’s what you see, that exponential growth.

That’s everything I have for this episode of The Money Wheel.