When looking at a customer or client, people too often look at what they can charge that person RIGHT NOW.
The real question is what are they worth to your organization over their entire life time.
When doing marketing and advertising, it might cost $100 to acquire a new customer and your average profit might be only $10. If that is the case it’s difficult for people to realize the value of spending $100 to make $10. However, if the customer makes a purchase with a $10 profit every week, on the 10th week you have recouped your marketing costs and after that this goes toward real profits.
Marketing and advertising people are aware of this but are your front line people?
If someone comes into your establishment and is treated poorly then the lifetime value of that customer is probably zero.
If a person calls you and gets a complicated automated call system and can never get a hold of a real person, the lifetime value of that person is probably zero.
If a person is treated with respect and feels valued, their LTV to your business might be immense.
This is something that all front line people have to understand and should be part over every training program.
Have a great day!