Wednesday, February 22, 2012

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Customer Value | How much are your customers worth? | Back




 

How much are your customers worth?

If you know your average customer gives you £1000 profit over their time as a customer, what would you spend to get them initially? Find out about customer values and change your business forever

"Understanding your customer value
will turbo charge your customer aquisition strategy"


Increase the lifetime value of each customer

If you had more customers as a result of greater leads and a higher sales conversion rate and you managed to increase the lifetime value of each customer your business had, would your business grow?

Of course it would. It stands to reason that if you increase the number of customers you have and increase the value of each customer to your business over time, then your business will make more profit and be worth more as a result.

This is about developing a relationship, profiling, segmenting, and repeat sales.

So how do we get more value from a customer?

  • Each customer buys more of the same product or service
  • Each customer stays with you for longer
  • Each customer buys complimentary products or services
  • Each customer recommends one or more new customers
  • Each customer offers a testimonial statement or positive feedback
That's just 5 ways to work on the lifetime customer value and its all about communication. If you've got your lead generation and sales conversion processes right then you should have a load of information on each customer.
  • Name and address
  • E-Mail, Phone No., Mobile No. etc
  • What they bought
  • Date of birth, Age, Gender, etc
Now you have this you should communicate with them regularly. At least once per month. You can survey them to find out other things of value to you. Depending on what they purchased you can include or exclude them from other offers. Being relevant is the best skill you can develop.

You can place them in a sales cycle. Perhaps they bought a car from you last week. A ford focus 2.0 tdi, so would you then market a fantastic new petrol additive to them 2 months later or a special on Mondeo roof bars?. Not if you're a member of "The Business Builder Club" as you'll have learnt to be relevant.

What you would do is send information on a special deal for servicing diesels or Ford Focus cycle carriers, ( you discovered they we're keen cyclists in a survey sent last month!). You would also put them at the beginning of a 3 yr sales cycle so they begin to see relevant messages from you just before they are thinking of changing the car.

Now the only reason they would not return and buy another car from you, other than the car and your service being rubbish, is if you had ignored them for the last three years. Did you know that 61% of customers leave for a competitor simply because they were ignored!

Members of The Business Builder Club can discover the amazing power of customer referrals and testimonials and how to get them, in the members areas. This is the best and lowest cost method of gaining new customers.

Join The Business Builder Club today