Greg is a sought-after speaker. Having faced many of the trials and tribulations facing the small business owner, Greg offers his audiences and clients practical actionable ideas to improve their organizations and ultimately get more “life” out of their business.
https://gregweatherdon.com/
Small Business Minute #24 – Customer Lifetime Value
There really isn’t a better testament for your business than having repeat customer sales. It tells you you’re doing something right because your customers are coming back for more. But the true magic of repeat business is understanding the frequency a customer buys, what they buy and the value of their purchases.
In Small Business Minute #21, I discussed how profitability increases when you deal with existing customers, but now I want you to leverage this information so you can enhance a customer’s lifetime value to your organization.
Big Companies Understand
Customer Lifetime Value or CLV has been used by large corporations for years. Companies like Gillette and Schick realized a long time ago that if they can get one of their shavers in your hands and you like it chances are that you’ll become a loyal and profitable customer by selling you an ongoing supply of blades at very high margins.
The same goes for printers. Once HP, Brother or Canon get you to buy one of their inexpensive printer, they know that you’ll produce a steady stream of high margin purchases every time you run out of ink.
Figuring Out