Growing your customer base is a sure fire way to add to your bottom line, but what about the customers you already have? Are you maximizing their potential?
Retailers use "average customer transactions" as one way to gauge their financial growth. They are constantly assessing how much they are earning per customer and what they can do to increase that number. Could you be earning more or have you maxed out your individual earning potential with each Employer already?
Like financial investments, each Employer will offer you different potential rates of return. Some Employers may only have the budget for one small project right now. Those Employers should not be discounted because someday their budgets, like a bullish stock market, will boom! They are your long-term investment.
Other Employers with huge discretionary budgets might only be testing this outsourcing thing or might have a regular in-house person who just can't do this one little project. By getting to know your Employers, you will learn what you can ultimately earn from them. Start maximizing your potential today!
Tips on improving your Customer Earning Rate:
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Always bill through Guru.com's Billing and Payment System
Every time you receive payment through Guru.com, you are increasing your average transaction amount and improving your CER. When you accept payment outside of Guru.com, you not only hurt your CER, you also negatively impact your ability to market yourself on Guru.com and acquire more customers.
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Maintain your relationships
Long-term customers tend to be your highest spenders. When you maintain customers over long periods of time you build a relationship and a foundation of trust. Every time you acquire new customers treat them like you'll have them for 100 years.
Remind Employers of your talents and services by issuing timely, targeted and personalized emails and print mail.
Giving discounts to long-term Employers may not seem like a money generator, but when they know that they are rewarded for their repeat business you will keep them coming back for more.
- Don't be shy, let them know what you can do
If you have just completed a logo project for an Employer, why not suggest a brochure? Letting Employers know the scope of services you offer cues them into what else you can do for them and may even help them identify additional needs.
Even if an Employer only has one need at the moment, they will have plenty more down the road. Give them a take away that includes all the services you have to offer.
What is the Customer Earning Rate?
The Customer Earning Rate, or CER, measures the average amount of money a Freelancer has made per Employer per month within the last 12 months.
How is the CER calculated?
- The first column, "Employer", lists all of the Employers you have earned money from within the last 12 months.
- The second column, "$ Earned (Last 12 Mos.)," lists the amount of money you have earned from each of those Employers over the last 12 months.
- The third column, "# Months (Last 12 Mos.)," lists the number of months since you received your first paid invoice from the Employer. This number will never be greater than 12 since we only calculate the last 12 months in this equation.
- The fourth column, "CER Per Emp (in Dollars)," is the amount of money you have made per month from each Employer.
- Next, total the CER Per Emp and divide that amount by the total number of Employers. If you have been paid by less than 3 Employers through SafePay within the last 12 months, the CER will use a minimum of 3 "Total Employers". If you have been paid through SafePay by 3 or more Employers within the last 12 months, then the actual number of Employers will used in this equation. This determines the average amount of money you have made per Employer per month within the last 12 months and your Customer Earning Rate.
- Your Customer Earning Rate is displayed at the bottom of the chart.
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