LTV

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!

Lawrence

Culture

When you bring a new person or group of people into an organization with a certain culture, it’s important to prepare and train them for the culture and what is expected of them. Realize it takes time for people to adapt and there will be hiccups along the way.

At some point, if they are unwilling or unable to adapt, you have to make a change. It might be putting them into a different group or it might mean getting rid of them completely but no one is worth ruining a positive culture.

Sometimes the best way to improve a group is to remove someone from the group. Addition by subtraction is difficult but the alternative can be fatal for an organization.

Have a great day!

Lawrence

Different views

When people express different views from your own, do you try to change their views or do you try to understand them?

Surrounding yourself with people who all have the same views sounds pretty boring to me. I would rather try to understand other peoples views and if they occasionally reshape my views, so much the better.

Have a great day!

Lawrence

Compromise

We all make compromises every day.

The questions is, what are you willing to compromise and to what extent?

There might be specific things you wont compromise on, or specific times you wont compromise but it’s the very rare person who never compromises.

Have a great day!

Lawrence