The Lifetime Value of your customer is one of the most important things for a business owner to keep in mind. In my opinion it is THE most important thing to remember, since it directly relates to customer satisfaction. Any company with a high LTV rate means that they are efficient. They spend less money obtaining customers and they make more money from each customer. It costs money to get new customers, why not really go the extra mile to satisfy the one you already have!
Let’s look at the 80/20 rule. The 80/20 rule basically suggests that 80% of your profits comes from only 20% of your customers. This might seem like a shocker to you, but no matter what business you’re in this ratio seems to pop up everywhere. So you might be asking yourself how do I improve the Live Time Value of my customer. Im going to simplify this seemingly difficult problem. BE NICE TO YOUR CUSTOMERS AND POTENTIAL CUSTOMERS!!
Yes, it is that simple. Before someone makes the decision to give you money for a product or service you want to be helpful, friendly and genuine. This is the winning combination. DO NOT get annoyed with customers, not even tire kickers. Smile (it even works over the phone) and try to help as much as you can in the shortest amount of time. There is a good chance that customer will come back if you can build a relationship with them.
In every facet of your business (marketing, sales and advertising) it’s important that you don’t come across as pushy. The hard sell doesn’t work much any more, people are far more weary of this than they used to be. All customers want to feel special and anything you do to exhibit this will help you in the long run.
The wonderful thing about internet marketing and email marketing is; you can build good relationships with your customers very easily. For example: Let’s say someone visits your website or shop, don’t get upset if they leave and walk away. Be pleasant and helpful and try to get an email address from them. Once you do this congratulations, you have just legally obtained a warm lead who has just had a close interaction with you or your company. This means you can send them information with them knowing who you are. The only correct way to build and market to a list.
Email marketing is not spamming and if you think of it as spamming than you will look like a spammer, simple as that.
Email Marketing Rule #1 - Do not try to sell your customer right away. It only takes one mis-timed offer by email to completely shut off your customer for good
Email Marketing Rule #2 – Make sure you remind them how they gave their email address to you in the very first email you send them. The first few emails you send are the most important
Email Marketing Rule #3 – Send your list free stuff. Give them free information, discounts, tips anything you think they will appreciate. They don’t have to be about your product or direct market. For example: If you are selling health cookies, give them information on some exercise tips. Understand who your customers are and provide them with information they would be interested in.
Email Marketing Rule #4 – Don’t be afraid to use some personality. Let’s face it, in order to sell to most customers they must like you or your company. Thought provoking and funny can really go a long way, even if you make them smile you have won them over a little. I’m not saying be fake to them, cause people can see right through that. Humans are more intelligent and perceptive than you think Love your customers! Treat them like a friend. I consider all my customers my friend, I can honestly say that. Anyone who shows at least some sort of interest in your product immediately shows you that you have something in common with them. That’s a friend if I’ve ever heard one.
So there you have it. This simple concept really does work, sure the hard sell and sub-par customer service might show immediate results right away but it’s all about the LTV (Life Time Value) of your customer. In the long run you will be making more money.
Here’s a little tool to help you calculate your customer’s LTV http://hbsp.harvard.edu/multimedia/flashtools/cltv/index.html
So to sum it all up. Become friends and touch every one of your customers and potential customers. It’s just good Karma regardless