“What Is A Customer Worth?”
episode #564 – February 14, 2021
HOST: Lorraine Ball |
What is a customer worth? When you understand the value of a new customer, you can set the right acquisition budget
Today I want to talk about what a customer is worth because I think all too often business owners look at what a customer’s spending today and see that as the only value of that customer. But if you’re in a business where customers come back time and time again, you need to look at the total picture, the long term value of that customer.
If that customer stays with you three or five years, there is additional sales revenue with out the sales expense, but there is more. When a customer really knows and loves you, they are more likely to be willing to talk about you to their friends and their families This goodwill has the potential to create multiple new opportunities.
So as you start thinking about how much you can afford to spend, to generate leads you need to think about what that customer is really worth to your business.
about the marketing minute
Each week, host Lorraine Ball shares just a few words on a marketing topic. She boils down creative ideas, practical tips, and decades of real-world experience into a mini podcast which is always less than two minutes.
Look for these mini bits of marketing inspiration every Sunday. Then come back and enjoy the longer interviews every Thursday.