The Lifetime value of a customer, how do you measure, and how do you maximize.
There are many ways to look at the value of customer. Traditionally, businesses look at how much they spend on a transaction. What if you looked at not just what they spent when they came into your store or placed an order with your business? What if you measured how much a typical customer would spend with your business over a period of time? Do they come back? When they come back, do they still spend? Do they tell their friends about you? Do their friends and acquaintances then buy from you as well?
How to improve the lifetime value of your customer base? One way is to use testimonials to get your customers to talk about how they enjoy your product or service. Put their testimonials on your website, give them excellent service and create raving fans. Look for ways to ask them to tell their friends about you and invite them to buy. Simple strategies like VIP clubs, noticing your best customers and recognizing them as part of your a client group are all strategies to keep them loyal!
For examples, a restaurant owner may give the customer one free lunch when they buy ten times, rewarding them for multiple purchases. You may also focus on educating your customer to understand everything that you offer. Send a newsletter, put out a catalog, or just have a conversation or discussion in person. Many companies I work with think that their customers know everything that they provide, but when surveying their customers, we find that customers are aware of only a part of the product line that is offered and rarely know the full offerings of the companies they are buying from.
As part of your sales strategy, focus on education and communication, how you can improve in those areas, and how can you make sure that as many customers as possible know everything that you offer. Invite them back to buy from you as many times as possible over the years, and get them to invite their friends and acquaintances to come in and buy from you as well.
This is a great strategy to help you to build your business. It’s easy to do and it’ll help you propel your business. Educate your clients to make you stand out from your competition and bring value to your customers.
If you would like more information or help measuring and developing the lifetime value of your customers, please contact us at info@lighthousestrategicpartners.com or call us at 508-946-2655.
