What Is The Value Of A Customer?


Have you ever thought about what the actual value is of each of your customers? Some are more than others, but if you add the total revenue that you get from your customers by the number of customers you saw last year or last month you would have the average value of what each customer is to your business.

Principle 4

The value of a customer is 20 times his annual sales volume. A $10,000-a-year customer has a lifetime value of $200,000. Wow, that is a lot. That is what you earn if you keep him happy. That is what you fail to earn if you lose his business. The key to success is to earn the next order during and between the transactions with the customers.

A service action or educational communication is as critical to the long-term loyalty of a customer as a sales action.

Here is the thought-provoking questions….

1. Do you know how much one customer means to your company?

2. Have you ever been responsible for losing a customer?

3. Did you ever calculate the cost of the loss?

Does your company spend as much time trying to keep it’s existing customers as it does trying to attract new ones?

Remember every customer contact is an opportunity to earn the privilege of that customer returning to your business.

What would your business be like if you contacted 10 customers a day to just say “thank you?”

What can you do today to make your customers happy that they do business with you and not your competition?


7 thoughts on “What Is The Value Of A Customer?

  1. I am trying to get one of my clients to see the value of exactly this at the moment – hard to imagine how much resistance to this there is. Probably because it takes analysis and not many people like that.

  2. And that’s not even taking into consideration the new business that can be realized through referrals by happy, loyal customers or the business lost when a potential customer decides NOT to try your business because a trusted friend or colleague gave your place a negative review. The impact is significant …

    • Hi Laurie you are so correct. We need to take our happy customers and ask if we can send them a link to give us a good review. It speaks volumes if you happen to have one or two bad reviews but 50 good ones.

  3. Tina,

    Thanks for the continually great articles. I think we have many similar ideas and passions that could be of significant benefit to each other. Would you be willing to arrange some time to talk directly and discover ways we can work together?

    I look forward to it!

    Best always

    david r frick SuccessVentures Business Coach & Consultant 502_645_6804

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