Customer value: Now in this case, I'm not speaking about the service you provide for the customer nor the cost value of the service. I really mean, HOW MUCH IS A CUSTOMER WORTH TO YOU?! Perspective changes vision.
So... HOW MUCH IS A CUSTOMER WORTH TO YOU?
I ask this question so many times in a day. What I come to find is, not a lot of small businesses really stop and think about the worth of a customer, the focus is only getting MORE customers. This "worth" does not need to be overall, it can be specific to each particular service you provide. I like to look at it this way; If I gave you a customer today, ready to buy, sign up, and/or spend money with you as a completed sale right now, how much money does that generate for you? Sadly, people think when I ask this question, and if they answer it truthfully, it may affect the price of the service I can provide. It does not! Rest easy, we know our Customer Value. ;)
Why is it good to know as a business owner or decision maker, how much a customer is worth to you? Well it's simple, when you're marketing or advertising for your business, you can see if you are really getting your money's worth. 9 out of 10 small businesses are losing money on marketing their services every day. It's so common to lose money on marketing and advertising, it's become the norm. Getting likes and views is great, but it's not an instant payoff. Visitors to a store is awesome, but when they walk out empty handed, what did you gain as a business? Nothing much today.
Think about this example: Placing an ad to get a serious customer to contact you, can cost you up to $1000, just to generate leads with emails and phone numbers. Then someone has to sift through the customers gathered, to pinpoint who would be a real customer and who is a waste of hard earned profit dollars on baseless marketing... So I see it like this; If you value a customer at $900 each, and you spent $1000 on marketing/advertising ads, to gain a 2 customers from it, you may feel like the ad worked and served it's purpose. It hasn't. You spent $1000 on ads to gain $1800 worth of business, but subtracting the cost to get the customer, your revenue is only $800 and that's less than the "worth" of your customer. Honestly, I'm not even considering the cost of the ad creators/marketers and working wage which plays a factor in your spend as well. So now your cost is sitting closer to $2000 and you just lost $200 but overall may feel like you gained 2 customers. The books say so too... It's deceiving.
Stop lying to yourself and don't avoid digging deeper. Every dollar counts in business, even if you made 100 deals a day, and lost only $2 on every deal you would lose $73,000 over the course of the year, and that's scary! Stop buying leads, and buy direct customers. When you buy direct customers, you'll skip over the tedious process of placing adds, paying a marketer, and sifting through a bunch of customer contacts to get one paying customer. The truth of the matter is clear, it does not help the bottom line. Very few companies handle this type of leg work for you the way S&L iMAGINATIONS does, keeping economic value of your business in mind.
Now you can see why knowing "how much a customer is worth to you" can benefit you and how much not knowing can hurt you. When I speak to you about the worth of a customer (Customer Value) you can have the peace of mind knowing I'm looking to help you make a profit! Not only that, your customers are prepared and ready to do business with you. You have the comfort of knowing that this is not just a random contact, we have prescreened this customer to your specific needs as a client. Meaning S&L iMAGINATIONS ask the questions that you may ask in a "Free" consultation. This speeds up the completed sales process by 70% - We present the offer to our clients with a wealth of information about their future customer. Giving our client the right so say yes I can take this customer, or no, this customer will not work for me. Only S&L does that.
So what is the value of your customer? Are you losing the cost of their value trying to gain them through marketing/advertising? Are you running ads for potential leads or buying direct customers? Good questions to ask yourself. When you get the answers to those questions, and you're ready to make money and not lose money, set up and appointment with us to see true revenue growth this year...Remember, your business results are only as impactful as the steps you take to get there.
ElBee Battles - 8 year S&L iMAGINATIONS Executive