How Valuable is Each Customer to You?
Every business worries about all the different aspects to their business, but many owners have yet to narrow down what keeps the beloved 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? Indeed your business is strongly supported by how long and often customers do business with you. Do you know the lifetime value of a customer(LTV) for your company?
Finding this out is not as hard as many may think, but knowing will open a lot of doors to increasing your profit margins and customer satisfaction. The next thing you know, referrals are knocking down your doors.
How long does the average customer stay with you and how much do they spend on average during this time they have been loyal? Your goal after you find this number is to figure out how you can increase the time these customers stay loyal as well as increase the AMOUNT they spend with you.
Do you understand how valuable this can be for your business?
How many times have you returned to your favorite restaurant or business? Have they ever asked for your information in any shape way or form? If so, have you ever received any info via email or snail mail? Well I'm sure if they have your information such as name and email, you have been hit with a promotion or two. Now if you have not experienced this, that business is leaving money on the table.
That business should value you as a customer and should want you to come back often to provide more business. It is not a ploy to steal your money, but to offer more value to you more often.
When was the last time you emailed or sent mail to show appreciation to your customers?
There are many ways you can benefit from knowing your customers LTV. It is up to you to really hone in and monetize it.
Until then,
David R.
