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Fact 2:
Attracting new customers will cost your business five times more than keeping your existing ones.

Did you know that most businesses actually lose money on a customer’s first purchase?

Sounds crazy?

Well imagine you spend $500 for an average size newspaper or magazine advert and get two new customers. That means that each one of those customers has already cost you $250.

As they are new customers they’ll probably not spend a great deal at first, so let’s say they make a $30 purchase – of which maybe only $10 is actual profit for you. Effectively your business has LOST $240 on that sale.

At this rate, the only way you’ll start making a profit on that customer is when they have spent more than $650 and, unless you do something to make them feel special and encourage them to come back to your business, chances are that they’ll spend their money with your competitors.

Now, compare these costs with those of sending a personalised letter to your customers inviting them to buy something that you know they want and need from you. Which do you think will show the best return?


Fact 1 Fact 2 Fact 3 Fact 4 Fact 5

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