Comments on: Lifetime Value of a Customer is Unlimited http://www.ducttapemarketing.com/blog/2008/06/28/lifetime-value-of-a-customer-is-unlimited/ Small business marketing blog Sun, 22 Nov 2009 02:06:52 -0500 http://wordpress.org/?v=abc hourly 1 By: web Content http://www.ducttapemarketing.com/blog/2008/06/28/lifetime-value-of-a-customer-is-unlimited/comment-page-1/#comment-399905 web Content Thu, 03 Jul 2008 07:10:58 +0000 http://www.ducttapemarketing.com/blog/2008/06/28/lifetime-value-of-a-customer-is-unlimited/#comment-399905 On the flip side, I recently had my carpets and upholstrey steam cleaned, 9 cats creates the need for that every once in a while, anyway, I found a steam cleaning company in the newspaper, possibly a bad idea, and hired them, they did a terrible job! The furniture was still wet several days later, they broke a window and, I recently discovered, they stole several DVDs.. If they'd done a good job I'd have used them everytime, for years to come, as it beats having to find a new company everytime.. Now I can promise I won't use them again and if I hear of a friend wantign to use them I'll advise against it. Customers can be a lifelong source of business, directly or through referrals, or they can damage your business, in the same ways. On the flip side, I recently had my carpets and upholstrey steam cleaned, 9 cats creates the need for that every once in a while, anyway, I found a steam cleaning company in the newspaper, possibly a bad idea, and hired them, they did a terrible job! The furniture was still wet several days later, they broke a window and, I recently discovered, they stole several DVDs.. If they’d done a good job I’d have used them everytime, for years to come, as it beats having to find a new company everytime.. Now I can promise I won’t use them again and if I hear of a friend wantign to use them I’ll advise against it.
Customers can be a lifelong source of business, directly or through referrals, or they can damage your business, in the same ways.

]]> By: Internet Strategy http://www.ducttapemarketing.com/blog/2008/06/28/lifetime-value-of-a-customer-is-unlimited/comment-page-1/#comment-399903 Internet Strategy Thu, 03 Jul 2008 06:10:59 +0000 http://www.ducttapemarketing.com/blog/2008/06/28/lifetime-value-of-a-customer-is-unlimited/#comment-399903 Sticking with a few precious clients and making sure you service them properly will go miles in helping your business, especially if you are relatively new in the field. If the client has a good rapport in the market and is well connected, you could expect tremendous growth. Sticking with a few precious clients and making sure you service them properly will go miles in helping your business, especially if you are relatively new in the field. If the client has a good rapport in the market and is well connected, you could expect tremendous growth.

]]> By: Chris Baggott http://www.ducttapemarketing.com/blog/2008/06/28/lifetime-value-of-a-customer-is-unlimited/comment-page-1/#comment-399853 Chris Baggott Tue, 01 Jul 2008 16:00:33 +0000 http://www.ducttapemarketing.com/blog/2008/06/28/lifetime-value-of-a-customer-is-unlimited/#comment-399853 When I was in the drycleaning business we were really focused on acquisition costs. an ephiphany came to me one day when I was studying our data and learned that 84% of customers who came > 3 times disappeared forever. This completely changed our marketing spend from getting masses in the door to getting those first and second time visitors to that third visit. We were spending about $12 per new customer and most defected. We lowered our spending to $3 for new customer and spent $15 on moving that smaller number to more visits on average. The net result after 12 months was 60% growth and an overall lower marketing budget. A lot of people raised their eyebrows when here at Compendium when we stopped doing trade events and just started paying people $50 to take a demo. But by knowing our numbers, we know that this is about 50% of what we were paying in the past. Lifetime Value works...but you have to know your data. Chris Baggott CEO Compendium Blogware www.compendiumblogware.com When I was in the drycleaning business we were really focused on acquisition costs. an ephiphany came to me one day when I was studying our data and learned that 84% of customers who came > 3 times disappeared forever.

This completely changed our marketing spend from getting masses in the door to getting those first and second time visitors to that third visit. We were spending about $12 per new customer and most defected.

We lowered our spending to $3 for new customer and spent $15 on moving that smaller number to more visits on average. The net result after 12 months was 60% growth and an overall lower marketing budget.

A lot of people raised their eyebrows when here at Compendium when we stopped doing trade events and just started paying people $50 to take a demo. But by knowing our numbers, we know that this is about 50% of what we were paying in the past.

Lifetime Value works…but you have to know your data.

Chris Baggott
CEO
Compendium Blogware
http://www.compendiumblogware.com

]]> By: SEO Snyman http://www.ducttapemarketing.com/blog/2008/06/28/lifetime-value-of-a-customer-is-unlimited/comment-page-1/#comment-399847 SEO Snyman Tue, 01 Jul 2008 08:00:24 +0000 http://www.ducttapemarketing.com/blog/2008/06/28/lifetime-value-of-a-customer-is-unlimited/#comment-399847 The value of a life long client, especially a satisfied one that refers friends and family, can not be expressed in monetary terms. The best form of marketing any business can enjoy is a satisfied long term client, period! The value of a life long client, especially a satisfied one that refers friends and family, can not be expressed in monetary terms.

The best form of marketing any business can enjoy is a satisfied long term client, period!

]]> By: Patrick Lennon http://www.ducttapemarketing.com/blog/2008/06/28/lifetime-value-of-a-customer-is-unlimited/comment-page-1/#comment-399838 Patrick Lennon Mon, 30 Jun 2008 21:22:52 +0000 http://www.ducttapemarketing.com/blog/2008/06/28/lifetime-value-of-a-customer-is-unlimited/#comment-399838 I agree, the first thought that came to mind for me when I read your post was if you get successful at this then you can really drive down cost of sales and lead generation will never be a problem. After sales service is a critical to its success. I agree, the first thought that came to mind for me when I read your post was if you get successful at this then you can really drive down cost of sales and lead generation will never be a problem.

After sales service is a critical to its success.

]]> By: John Jantsch http://www.ducttapemarketing.com/blog/2008/06/28/lifetime-value-of-a-customer-is-unlimited/comment-page-1/#comment-399815 John Jantsch Mon, 30 Jun 2008 13:53:57 +0000 http://www.ducttapemarketing.com/blog/2008/06/28/lifetime-value-of-a-customer-is-unlimited/#comment-399815 @John - I wasn't actually suggesting people do that, in fact I preach raising your prices as a core strategy I was simply driving the point home that you could look at it that way - most small business owners don't look beyond the sale - what you had to give your product away and the only way you could collect would be to make that customer so happy they would refer - do you think you would pay more attention to thrilling them every step of the way? @John – I wasn’t actually suggesting people do that, in fact I preach raising your prices as a core strategy I was simply driving the point home that you could look at it that way – most small business owners don’t look beyond the sale – what you had to give your product away and the only way you could collect would be to make that customer so happy they would refer – do you think you would pay more attention to thrilling them every step of the way?

]]> By: John Jackson http://www.ducttapemarketing.com/blog/2008/06/28/lifetime-value-of-a-customer-is-unlimited/comment-page-1/#comment-399813 John Jackson Mon, 30 Jun 2008 13:32:23 +0000 http://www.ducttapemarketing.com/blog/2008/06/28/lifetime-value-of-a-customer-is-unlimited/#comment-399813 If only it were that simple! The biggest problem with this suggestion is the element of giving away your product. This would serve to alter perception of the value of the prodcut and those who were given it for free may not respect the products intrinsic value. Further even if they did recommend it to others, you could well create demand for free products but not paid for ones. Ideally, and especially in the current economic clmate, business should pay very close attention to all aspects of their product offer and service. Consumers are still spending but can afford to be more selective when and where they spend their money. Provide exceptional service and the word-of-mouth will happen and your customers will be lifetime customers. If only it were that simple! The biggest problem with this suggestion is the element of giving away your product. This would serve to alter perception of the value of the prodcut and those who were given it for free may not respect the products intrinsic value. Further even if they did recommend it to others, you could well create demand for free products but not paid for ones.
Ideally, and especially in the current economic clmate, business should pay very close attention to all aspects of their product offer and service. Consumers are still spending but can afford to be more selective when and where they spend their money.
Provide exceptional service and the word-of-mouth will happen and your customers will be lifetime customers.

]]> By: Tom Kasperski http://www.ducttapemarketing.com/blog/2008/06/28/lifetime-value-of-a-customer-is-unlimited/comment-page-1/#comment-399811 Tom Kasperski Mon, 30 Jun 2008 03:44:27 +0000 http://www.ducttapemarketing.com/blog/2008/06/28/lifetime-value-of-a-customer-is-unlimited/#comment-399811 The best way to use this concept is to deliver on your brand promise...every day. The bar is low and advocacy will follow. The best way to use this concept is to deliver on your brand promise…every day. The bar is low and advocacy will follow.

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