May
28

Lifetime Value of Your Customer (LVC)

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Do you know the lifetime value of your customer?

Do you know what that means?

If you said, “No” to either of these questions, you definitely need this post…

The Lifetime Value of Your Customer, or LVC as I’ll call it from now on, is what your average customer is worth over the entire time that they are your active client. So, if your average customer buys 3 times a year for 5 years and each time they spend $100 (just to make it easy), then the lifetime value of your average customer is $1500. It takes a bit of digging to come up with this information, but from a marketing standpoint, it’s pure gold.

Why, you ask? Well, because if you know that your customer is worth $1500 to you over the next 5 years, do you think you would be more willing to ‘shell out’ $5 or $10, or maybe even $100 to get them and keep them? What if you find out that your average customer is worth $10,000 to you over 5 years? Now how much might you be willing to spend to get him or her? Quite a bit, I would imagine.

I was fortunate enough to participate in an event recently where the fabulous Jordan McAuley was invited to speak. He showed a very clear understanding of this principle when he provided EVERY person in the room with a copy of his book, as his gift for attending the event. I don’t know exactly how much each book cost Jordan to have on hand, I know he had to bring a big box with him, I know he hung around and signed them for everyone, chatting and really building rapport. Never mind the instant good will giving the book out created, making people want to sing his praises…

How many of the people in that room do you suppose have gone home and checked out his website at http://www.contactanycelebrity.com? (By the way, there’s a free 7 day trial there – have heard great things about the resource and will be playing with it myself soon… and you can get a 30 day free trial if you get the book, which gets incredible reviews. I look forward to spending some quality time with it this weekend.)

You can get the book here: http://www.CelebrityLeverage.com.

Jordan brilliantly showed his understanding of the LVC of his prospects – if just a fraction of the people that got his book join his website and stay on board, those ‘free’ books will have been well worth it.

(Note: I have no affiliation with Jordan, other than I think he is an amazing guy who has really figured something out that can help and support small business owners and entrepreneurs. None of these links are affiliate links and I don’t get anything for writing about him, his book or his site.)


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