Hey everyone, Grant from Happy Tans here. I just want to make a quick video kind of vlog about discounting … I’ve seen some people posting these groups about possible sites, dealsaver.com, groupon.com, these types of sites. They’re great to get people in your door, but I feel like a lot of people focusing on the wrong metrics, so to speak, not to sound too nerdy there. The whole thing with that, in my belief and that, is that these people that are coming with these discounted pricing, they’re never going to respect your full price. In other words they’re probably one-and-done customers as a lot of people have probably experienced.
Now there is obviously exceptions to every rule and things like that so I’m sure that some people have gotten long-term clients out of that. But the whole thing here is to focus on getting people in your door that are quality customers instead of focusing on the amount of customers that you get in the door. I tell people I would rather focus on the amount of quality customers you can get in the door.
With the web design businesses, like I do, I always focus on quality leads versus the quantity of leads. We want to get people in the door. Instead of a hundred one-time customers, we want 25 customers that come all year. If you think about the value of that, I really like to think about the customer lifetime, client lifetime value, whatever you want to consider it. If you have someone that comes 10, 20 times a year, that’s probably worth five or $600 to you, just in tanning alone. Obviously if you offer other service, they might be teeth whitening. They might buy products, they might buy package, etc. So focus on the lifetime value of that customer.
A lot of the people that have been in the business for a while probably have the same customers for a number of years, you never think about that person that comes, spends five or $600 a year, how long they’re going to be a customer, hopefully for a number of years. People probably have the same customer for four or five plus years and you gotta think about that. That customer then goes from a one-time 50% discount from Groupon, a $15 tan, into somebody that spends two, three, $4,000 with you over the lifetime of their coming to your business and hopefully beyond that. Those people are loyal to you. The people that’ll buy anything from you, they’re always there to support you. Those are type of customers that you really need to focus on.
So while Groupon and Dealsaver and those types of site, they’re going to bring foot traffic to you. They’re going to bring people in the door, that’s not exactly the type of customers or clients, I don’t think anybody wants. Those people that are willing to pay $15 are not going to be willing to pay $30, $35, $40.
Focusing on and investing money into getting people that are gonna respect you, ultimately, your time, your services, that pay, that value you, that’s really important.
If you look at big time brand, the most successful brand of all, the richest company in the word, Apple. They never discount their products but they have the most die-hard fans in the world. If you look at the actual percentage of the population that uses Apple products, it’s actually not an alarming number but they’re as strong as any customer base, with people waiting in line for 20 hours for a freakin’ phone, which is ridiculous, but they’ve created that big of a brand and that’s the type of customers they want to attract and that’s the type of customers they do attract. I know that it might a little bit more, you might not get as much money upfront, but it’s worth it to invest money back into your business, to improve your marketing, to even think about who is your ideal customer, who are the type of people you want to do business with. Those are the people you need to attract and probably those people that are using these deal sites are not the type of people that you want for clients.
It’s hard to understand as a business owner, especially for people that are just starting out, it’s really difficult to say, “Wait, we don’t want to bring in an alarming number customers, we just want to focus on the quality of customers”. It’s hard for any business to understand that and it very important and it will vital to the success and the longevity of your business. Getting these people in the door one time does not give you anything long-term. They’re probably not going to come back. They’re probably never going to want to pay full price. They’re probably going to complain a lot because they obviously have X amount to spend on this so they’re really going to focus on that. They’re not going out and spending $40, $50 on a tan, they’re paying $15, $20 because that’s what they can afford. They’re going to be a lot more particular about what they want. Probably get more complaints and things from that.
Rather than focusing on the number clients tat you get in the door, focus on the quality of the clients that you get in the door. Take a step back and look at the type of people that you attract with your marketing, with your brand, with our messaging. Don’t go after the low-end clients. Don’t go after the masses. Instead go after the people will be there for your company for the longevity and for a long time.
If you have any questions, I hope this helps. Feel free to reach out to me [email protected].
Thank you very much.
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