Marketing Mondays: Discover the True Value of Your Customers

One big mistake that many business owners and consultants make is not understanding the true value of a client or customer.

A customer that pays you $500/mo or $5000 for a project is worth just that, right? Wrong!

It’s critical that you remember the Lifetime Customer Value of each client. LCV is the total value in dollars that each client will spend with you over their lifetime.

If your clients pay you just $500 a month, but on average stay with you for 3 years, each client is actually worth (their LCV) $18,000.

Why should you care?

The reason you must keep this splendid equation in your mind at all times is because it’s a game changer.

Knowing that each client is worth $18,000 to your business…you can confidently spend more money on your marketing (I’m guessing you’re spending no where near $18,000 per client on marketing) to bring in more leads.

And you can do so because you know that as long as you bring in a client at a lower cost than what they are worth, you’re going to make moolah!

Of course, if you’re in a service business there is a point of diminishing returns. The consideration of how much time you have available and how many clients you can handle.

Here’s another reason why LCV is so powerful…

How much are you spending right now on treating your clients like gold?

$50, $100, $500? If a client is worth $18,000 to you (many clients are worth many times more) don’t you think you could drop another $500 or $1000 over the lifetime of that client to pamper them? To make them feel special. To show them that you really care?

And when you do that, what do you think happens?

Right….your clients appreciate you more. They respect you more. They feel closer towards you. The relationship becomes stronger. Ultimately, the chances of them continuing to use your services increase.

You get the picture.

Please Share This Article If You Enjoyed It:

  • Ernestkpan33

    WWow… That’s an eye opener. I am loving Marketing Monday already!!
    Thank you so much!

  • Nswnaper

    Very true. We need to always thing of the long term value of our clients.

  • Bob L

    I am new to consulting, however, in my last business, I “hooked-up” with a local high end eatery know for their outrageous deserts! I would give away a gift certificate for 2 deserts with any new lead that closed…. I would settle up with the eatery on a weekly basis…. The average cost to me was about $25.00 per lead…. that is when the certificates were used (about 20% of them were never redeemed!)

    It was a great, and most of all very much appreciated way to say “thanks”….

  • Islam

    I got it
    But you know, sometimes i know it is wrong to decrease my marketing budget when there is a cash flow problem
    But i have to do this. otherwise i will not pay the rent or the salaries
    I know it is wrong but i can’t stop this reaction

    • Islam – if cash flow is too tight to allow this you can always find other non-monetary ways to treat your clients like gold and provide them added value.

  • Jozef_janotta2003

    Never thought this way. I’m fairly new to consulting and your advice is priceless. Looking forward to the Marketing Mondays! Your info is applicable in any country. Thank you!

  • I am thinking of doing a membership programs and I want my future clients to stay for the long hall. Thanks, made me think.

  • Great post! I am excited about Marketing Mondays! I’ve been working on treating my consulting clients much better… I’ve started getting leads and referrals and some buzz spread about me, which makes me even more generous with closing gifts and little “just because” gifts.

    I made 1 client VERY happy and she told me that she wanted all the ladies in her neighborhood to know about me. Last night she hosted a party with 14 ladies, there just to hear about Meal Planning for Moms. I booked more consults in 2 hours there than I do in a normal week. If you make your clients really happy, they’ll do the MARKETING FOR YOU!. Love it!

    • Nice one Jessica! Awesome to see you leading that charge and putting those ideas into action.

  • Michelle

    Thanks for sharing. I have two new clients right now that are prefect examples. I gave them a cheap price to land them as a client, but both have now come to me asking for extra work, ie website updates, direct mail marketing, training, business cards, and social media marketing. All from a small presentation folder design project!

    Never undervalue your customers 🙂

    • Michelle, welcome to the community and great to have more examples that people can learn from.

  • Ernest – glad to hear that! You’re welcome.

  • Bob – that’s a great example. Thanks for sharing it!

  • Vincent Utere

    Thanks for this beautiful insight. I am consulting part-time in Public Relations. I find your ideas strong enough to dispel the fears that have been holding me back from launching out full time.

  • Prent3

    Thanks for the insight. This is wonderful already!

  • Joseph

    Thanks very much for the insight it sure ius beneficial to investment in our investments.

  • Anonymous

    Yes! i will like to see it.
    I am looking for more ways to bring those smiles on my clients faces and keeps them coming back.

  • Successdg

    Great ! really makes you look at your client in another lite,I will start to incorporate this in my marketing today

  • I just wanted to take a minute and thank everyone for their comments and emails. Appreciate the support and stay tuned for the next Marketing Monday session. In the meantime, please continue to share this post with your friends and colleagues.

  • winston

    Michael I really enjoy reading your blogs and articles. You offer so much to the society. Your are amazing. We are proud of you. winston http://www.telesalestips.com

  • Anonymous

    I love the posts that are made here. I am a consultant. Not making it happen at all. These posts will help me going forward.

  • Great post, In addition to the money coming directly from that customer there is revenue to be made from referrals. A customer who has a strong relationship with your company will tell others about their positive experience which leads to oddles of additional business.

  • Before start up should care about one thing which is attitude, behavior with friends or family because a Entrepreneur never be success if he don’t know the worth and value of their customers. Without customer attention no business will be success so that’s why every company trying to enhance their customer services to get maximum leads from them. Really good point author highlight in this article about the total worth of business generation from customers, if a businessmen can invest about maximum 5 or 10% of total business it will not a big amount to get customer attention and or long term relationship with customers. It will be more effective if companies can offer some discount or goodies for returning customers or highly potential customers.

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