The lifetime value of each client is defined as the total gross profit that you accumulate from a customer over their lifetime of doing business with you less the acquisition cost and marketing expenses over their lifetime.
When you know this value, you also know exactly how much money you can spend to acquire a client through marketing.
Do you realize the power that gives you as a small business owner? Did you know that by knowing your customer lifetime value, you can literally dominate your market and eliminate your competition in the minds of your clients?
What you need to know…
Most business owners know intuitively that it’s much easier to make an additional sale to a current client than it is to make that first sale that acquires that client. Unfortunately, they don’t do enough to figure out how they can sell more to their existing client base.
Why you need to know this…
It’s important to understand that a client who has had an exceptional experience with your product or service is naturally going to look to you to help them fulfill their other needs with additional products or services. They now trust you, and are happy with the relationship they have with you. You should take advantage of their trust and make an offer for another sale, product/service immediately after their initial purchase, and schedule frequent campaigns to offer more to your client base.
The cost to you if you fail to act…
When your customers recognize that you provide them with value, they will continue to purchase from you. But, you can’t assume they will just call you up and ask you to sell them something. You have to make the effort to ask for their order.
So are you doing that?
Do you know how to do that?
Are you aware that all of this can be put on auto-pilot, and requires no further action on your part whatsoever?
This is easy to do and in most cases… costs you nothing except a little time to set it up.
How can you learn to develop these critical skills? Here is my suggestion, STOP trying to be the kack of all trades, find people who can fullfill the roles you need help with and become good at delegating
These are just a few tips on how to start growing your business, increasing your revenue, profit and cashflow so you can start working on your small business not in it.