It pays to invest your time and effort into finding good customers. You may be asking, isn’t any customer a good customer? Good customers take work to find. The best clients are those who stay with your company for a long time, advocate for you to friends and family, and repurchase and reinvest in your services.
One of the best ways to improve the future of your business is to focus on creating a credit repair company that finds new leads with increasing lifetime value while providing services that keep your business top-of-mind all year.
Here are the 5 secrets that will help you find the right customers and properly invest in your future.
1. Sell a Subscription
A credit repair business can have a high return with low investment. Don’t fall victim to the temptation of charging per deletion. This model will leave you with clients who are “one-and-done.” Instead of waiting to be paid after the bureaus follow through and remove a credit report error, charge your client an affordable low monthly fee. This will ensure you build a credit repair business that is destined to last.
A subscription credit repair business will:
- Bring in new paying clients each month
- Establish you as a friend and expert who stays with clients in good times and bad
- Generate new referrals as clients tell family and friends
- Increase revenue and decrease churn
Charge a subscription fee and immediately increase revenue. This provides a guarantee to clients that you will keep their financial needs top of mind and offer consistently good service.
When a client buys a subscription, it signals their commitment to your business and brings recurring revenue that increases their lifetime value. Use the revenue calculator to see how a subscription model will positively impact a credit repair business.
2. Build Relationships
Customers will stick around longer (thereby increasing their lifetime value) when they know that you are consistently caring for them. Be personable and check in with clients over email or by making a monthly phone call. If a client is paying a monthly fee for your credit repair services, reassure them that they are getting a good return on their payment. This will cost you nothing and make your business grow!
Offer phone or live chat coaching and monthly credit updates as a part of your service package to build the best ongoing relationships with customers. Being in good financial health is a lifelong activity and if you are consistently looking out for their best interests, you will attract lifelong clients.
3. Watch Your KPIs
Tracking your business’ Key Performance Indicators (KPIs) each month is essential to the continued success of a company and knowing if your customers are satisfied. A successful credit repair business begins with trackable goals. Each prospect will move through the sales cycle and it’s important to know when they enter, if and when they drop off, and how much revenue is generated per client.
- Conversion rates: Figure out and track the most important conversion rates in your company (e.g., online visitors to leads, leads to clients)
- Average revenue per client: This KPI should reflect the revenue generated from clients. A low number is a symptom of needing more high value clients.
- Churn rate: A major driver of lifetime value in a subscription-based model is monthly churn. A low or negative churn rate is a good reflection of clients staying with your business. You want a low churn rate with high revenue per client
Looking at KPIs will tell you how effective your company is at meeting its goals and where you need to make adjustments to keep clients satisfied in order to grow a customer base with high lifetime value.
It is difficult to build a large subscription client base if people are regularly leaving. Try to create competitive moats that differentiate your service from others. By doing this, you will have a stronger value proposition and customers will likely stick around longer.
Tracking KPIs is easy to do with Credit Repair Cloud’s Business Dashboard.
4. Cross Sell Services
Instead of hoping for the perfect client to contact you out of the blue, invest your time in broadening the scope of your business offerings and enhance the value of current clients. The foundation of your business is credit repair and you can add on other services like digital lending and invoicing that will build trust and generate more revenue.
Clients who stick with your business for a long time correlate with higher income for your business. One client will generate twice the amount of income for your business if they book time for credit repair and another service like bookkeeping. You can solve a wide variety of client’s problems by cross-selling complementary services that will increase the client’s overall lifetime value.
5. Listen and Educate
Another way to increase LTV is to make sure your credit repair business remains valuable during the entire time the client is working with your business. Achieve this by not only fixing their immediate credit problems but by solving other financial problems they mention while discussing credit repair.
- Create a sales script you can rely on when you speak to leads. Take time to check in and discuss their needs and wants. This will help you choose the type of additional services you offer to clients
- Relieve the client’s burden by offering individual consultations or small seminars to discuss the basics of budgeting, tracking expenses, applying for credit cards, and acquiring loans
- Boost your credentials by enrolling in credit repair training and become a financial fitness coach
Most people need to manage their personal finances and have not been educated on the right steps to take. Clients who are ready to take the leap into credit repair will come back to a credit repair specialist who is properly trained to educate them on all of their financial dilemmas. Businesses that offer more to one client are less likely to be displaced by a competitor and will generate more income per client.