Every business worries about all different aspect to their business, but a lot of owners haven’t narrowed down what keeps the business alive. Knowing that little gem can greatly increase your bottom line. Do you know what that is?
Surprisingly enough it is the lifetime value of a customer. I bet you didn’t see that coming did you? In any case, yes this is what your business is supported by. I have another question, do you know the lifetime value of a customer(LTV) for your company?
Breaking this down a bit, finding out is not that hard, but knowing will open a lot of doors to increasing your profit margins as well as customer satisfaction. Which will turn into referrals, and increased sales.
How long does a customer stay with you and how much do they spend in the time they have stayed with you? Your goal after you find out this number is to figure out how you can increase the time they stay and also increase the AMOUNT they spend with you.
Can you see the value of doing such things?
How many times do you visit your favorite restaurant or business? have they ever asked to have your email or info is any shape way or form? if Yes, have you ever received any info via email or snail mail? If so, then you most likely visit more than if they didn’t.
That business values you as a customer and wants you to come back often and give them more business. It is not a ploy to steal your money, but to offer value to you more often.
When was the last time you emailed or sent direct mail to show your customers that you value them?
There are many ways that can benefit you from knowing your customers LTV. It is up to you to really hone in and monetize it. We will get into monetization of that info on another date.
Until then,
David R.
