LifeTime Value of your Customer Part 1

WFIM is now The Little Guy Marketing, you can find our website HERE


The Life Time Value of your customers or LTV, do you know what is is for your customers? By creating good relationships with your customers you can increase the LTV and convert prospects into buyers.

LTV lesson one: Do not pay too much to acquire a customer. Do not over pay to get a new customer. If your spending $500 a month on a phone book ad you need $500 a month in new business to cover that cost right? Actually no, its higher because you have lost customers that you need to make up for plus margins to meet. A brand new customer costs you more than existing customers.

Is it easier to acquire a new customer or to service an existing one an build on your relationship? Do you know what the retention rate is of your new customers? In an average business 50 percent of first time customers will not use you again! Are you average?

Things you need to know whats the average order size of a first time customer? what is your defection rate? whats the real cost of servicing a first time customer?

If you are online you may be paying for advertising clicks that do not convert to a sale! The cost of those clicks would need to be added to the cost of a newly converted customer. Most people who visit your site do not do what you want them to!

This blog post was written by William Fennell an internet marketing consultant based in Michigan City Indiana. 219-210-6000
http://www.thelittleguymarketing.com/