21% increase in profitability with $0.00 additional promotional costs The last article in the series was entitled, ‘Embrace the science of consumer decision-making’. It looked at the potential impact of focusing on the lifetime value of a prospect, whereby the focus shifted from driving new enquiry to driving conversion rates. This would also increase the […]

21% increase in profitability with $0.00 additional promotional costsThe last article in the series was entitled, ‘Embrace the science of consumer decision-making’. It looked at the potential impact of focusing on the lifetime value of a prospect, whereby the focus shifted from driving new enquiry to driving conversion rates. This would also increase the average sale per customer, margins, repeat business rates, and referral rates.We considered this simplistic model: A 5% increase in your conversion rate (say from 100/month to 105) A 5% increase in your average sale per customer (say from $20 to $21) A 5% increase in margins (say from 20% to 21%) A 5% increase in repeat business rates (say from 20/annum to 21/annum) A 5% increase in referral rates (say from 10 in 100 to 10.05 – average 6 months) The outcome of this model was a 21.5% increase in profitability in year one and a…