Value of a Lifetime Customer
Most savvy business owners understand that it’s important to maintain good relationships with their customers and keep them repurchasing for many years. That being said, most would be hard-pressed to give you a dollar amount if you asked them what the actual value of a lifetime customer is.
Have you ever calculated the Lifetime Value of one of your Clients ??
Value of a Lifetime Client
I think this is important because once they knew this number, most businesses wouldn’t be so frugal & cheap on customer acquisition and retention, (hmm, perhaps a monthly customer newsletter?)
Jay Abraham, wrote an awesome book, Getting Everything You Can Out of All You’ve Got, and chapter 5, “Break Even Today, Break the Bank Tomorrow,” addresses this topic in a marvelous way. The following excerpt is from Jay’s book.
“The current lifetime value of one of your clients is the total profit of an average client over the lifetime of his or her patronage – including all residual sales, less advertising, marketing, and incremental product or service-fulfillment expenses.”
for the rest of the article and the Lifetime Value worksheet use the link below to get more information:
http://relevantmarketing.org/the-value-of-a-lifetime-customer
Jay Abraham is a powerhouse of ideas and distills them down into clear and obvious tactis and strategies. Good work.