Your customers are worth more than you imagined.
A few weeks ago, I was talking with Larry Rice, from Rice Consulting, about using data and financials to drive marketing decisions. Larry is a fantastic accountant on the South Shore of Boston. But he's much more than just a numbers guy. He understands business and how it works. So, he's become a tremendous help to me in discussing my own company and its systems.
Larry reminded me of the huge concept of the "lifetime value of a customer." It's a simple calculation with really huge results. Watch our discussion, and then see how that conversation impacts the way you view the costs involved to gain a customer.
Glad you asked.
- Remember to use data (your financials, sales numbers, etc.) and not just feeling to evaluate your customer base.
- Once you know the lifetime value of a customer, the question of how much am I willing to spend to get a customer really comes into focus.
- When it comes to your most obvious marketing tool, your website, be willing to spend what it takes to represent yourself well. It won't take much to pay for the expense. (By the way, I'm going to put up a calculator soon to show you how much income your website can generate for your business. That's just a teaser.)
What about you? What did you learn about the lifetime value of your customers?