What is the lifetime value of a client? And how do I calculate it?

To understand the lifetime value of client we must define the different components as we are dealing with time and value. Time as in retention time period of the customer and value as in the average value in currency. The lifetime value of the client can then defined as per the image below.

LTV = Average Value of Sale x Number of Transactions x Retention Period.

CLV = LTV x Profit Margin

When you understand this formula we can see that the value of one customer is extremely important to your business and protecting that value is off utmost important. One of the components in the formula is retention time period, to maximize the LTV we have to try increase the time period of retaining a customer, the longer the client stays a customer the greater the LTV value will be. Simultaneously we want to maximize the number of transactions the customer produces  within the time period, this too effect the LTV with great effect.

Let’s put his into an example specific to the Microblading industry.

For this explanation we will assume the cost of Microblading today is a R1500, a 6 week Touch up is R750 and an annual fill is R1000.

So potentially we have 3 payments within a year with one client.

LTV = R1083 x 3 x 1

LTV = R3250

CLV = R3250 * 80%

CLV = R2600

So you can see that one client is not just worth the initial procedure cost, we need that customer to maximize their spend to achieve the full spend at your salon.

On a turnover calculation 1 client is worth R3250 per year, now we as digital marketers here at the Digital Ninja need to strategize and campaign to get more of these R3250 client through your business, once we have achieved an plugged a pipeline of customers lining up at your door we are growing the business substantially.

Did you know on an evolving 12 month basis, if you land 1 new client a day with the LTV calculated at R3205, you are running a R1 186 250 business in turnover at best, at worst you just use the initial procedure cost you are running R547 500 business in turnover. These are amazing but simple number broken down to achieve a goal, in order to achieve that goal for your business.

If you want to receive a Free Audit, click HERE and we will most definitely help grow your business guaranteed.

The Digital Ninja

What can digital marketing do for your business?

That is a very good question in today’s high paced business world. Did you know According to a Microsoft study the average attention span of a human is 8 seconds. As digital marketers ans knowing this information, we can design campaigns, strategize our approach and deliver content through technology that can capture audiences in order to drive sales.

Sales! Everyone needs it right, for a business to thrive sales needs to top priority and we need marketing to drive those sales. Marketing has evolved at a fast pace with various platforms to post and view content on. Digital marketing is more than just brand exposure on these various platforms, it allows us to market a proposal or deliver a jaw dropping offer, it allows us to reach a specific customer and eliminates the “one shoe fits all approach”.

Digital marketing allows more than that, it allows us to generate high quality leads, build campaigns, automate systems and most importantly drive sales and grow your business.

By building a pipeline for sales through a sales funnel, it allows business owners to make executive decisions over there business, rather than worry where their next client is going to come from. This sales funnel is set up in a way that automates the selling process, generates the lead, makes the sale and responds with follow up email sequence. Sound to simple right, but that’s how easy it is.

Digital marketing through The Digital Ninja can set your business apart from your competition, with highly specialised digital marketers this team will literally help grow your business with optimised strategies overnight.

Digital Marketing is by far the most cost-effective solution to marketing. Don’t be left behind, let us grow your business and produce the results you need.

For a FREE Audit click HERE and let us help grow your business.

The Digital Ninja

I post on Facebook, how are you different?

That is a very good question and one has to understand how FB works in order to answer this question. Facebook just like any other social media platform is a business, and a very good one I might add. Just like any other good business Facebook wants to maximize its revenue, its reach and gather as much information from users across the world as possible.

This information does not come cheap and Facebook allows marketers to use this information in a very positive way. Hold this thought, I will come back to it in a moment.

If you post something on your wall, chances are that not a lot of people will see your post, this is called organic posting. Research from Social@Ogilvy suggests that for Pages with more than 500,000 Likes, organic reach could be as low as 2%. Based on the figures above, that means a Page with 10,000 fans could expect just 650 of them to actually see that Page’s posts in their News Feeds. Wow that is insane, only 2% of people see your post organically, that is a very low number. If you are planning to build your brand, increase your likes make sales through your FB page, I have to tell you that based on those figures your chance of success is very low.

How do I increase those stats? you might ask. Well you have to advertise is the most simple answer, it not the only answer, but most cost effective to achieve a return on investment. Now that is where we at The Digital Ninja can help you, we have studied and understand how Facebook algorithms work, we will building Audiences , installing tracking codes and structure campaigns that generate leads optimise your conversion and increase sales to your Microblading Salon.

Microblading is a very niche industry, and the service is in great demand among women, tapping into that specific market successfully and increasing your salons sales revenue, you will have to align yourself with a digital marketer to achieve these results.

Here at The Digital Ninja we have laser focused strategy that will increase leads, increase conversions and ultimately increase sales revenue. That is what sets us apart, strategy and an amazing winning formula. Traditional marketing is outdated, slow and definitely not effective. The Digital Ninja applies the latest knowledge and skills when it comes to marketing online, unlike others we track our clients performance, enhance the campaign and refine the audiences to achieve money back guaranteed results.

Image result for money back guarantee

That is what sets us apart from the rest, if you are interested in a FREE Audit, click HERE and let us grow your business.

The Digital Ninja

Can digital marketing be automated ?

When talking anything digital our minds wonder off to this notion of robotics or automation, well mine does when I think anything digital. You see in most cases structures and systems can be put in place in order to automate the process and do the heavy lifting. In most cases, manual human intervention is still required.

Image result for automated robot

As we live in a digital age, with various social media platforms delivering sound, video and image content, I believe that a large chunk of the work can be automated, however, digital marketers still have set the parameters, define the campaigns, strategize our deliverables, determine our target market, build our sales funnels, set up a leads database and send out emails. Wow that’s a mouthful. Unfortunately, there is no way of getting away from the work or the workload when it comes to marketing. That is why it is so important to find a someone who specialises in digital marketing within your market; you want to get it right the first time. With this digital age every platform, every detail, every campaign becomes highly specialised.

Now you ask me, “…but wait you said some work can be automated.” The part of the value chain that can be automated once set up, is the running of your Face Book ads, Google Ads, data and lead capturing and then confirmation or thank you e-mail. That does form a large part of the work, but the setting up and researching the work in order to get it right the ‘first time’ and make the campaign a success is most important. If this is done correctly, the leads and conversions will follow, and a solid data base of potential customers will develop.

In conclusion, the thought of a digital marketing being automated completely is not possible, however we have amazing software that provides some help in order to facilitate and assist this mindset of automation.

If you would like us to do a Free Audit , click HERE. Let us help grow your business.

The Digital Ninja