Let's talk about Numbers...
Sue Gallagher
Build a Business That Works so YOU don’t have to: Master the 5 Levels of Ownership, the 9-Step P.R.O.F.I.T. Roadmap, and the 3 Pillars of Success. I'm here to guide and support YOU every step of the way...
Two Really Important Numbers To Understand In Your Business...
We all know that numbers are the language of business right?
There are two key numbers in business that I find not many business owners know...
1?? Customer acquisition cost...
2?? Lifetime value of a customer or client...
The idea of knowing these two key numbers is to drive your acquisition cost down...
And
Raising the lifetime value of your customers or clients...
Today I want to focus on the lifetime value of a customer...
If you already know yours well done but do carry on reading you may find a different perspective ...
If you don't or you've not looked at it for some time stick with me...
The best way I can explain this is with an example from my own life...
Now I shop in a certain supermarket and have done for 32 years...
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On average I spend let's say ￡100 per week (wish I could get a weeks shopping for ￡100 these days ??)
So 32 years at ￡100 a week equals ￡166,400 throw in an extra ￡1,000 per year for Christmas, birthdays Easter, and general household 'stuff' like the kettle I replaced last week and suddenly that number is almost ￡200,000...
Let's now assume I'm going to continue to use the same supermarket for another 20 years (?? I'll still be pushing my trolley around in 20 years) and let's assume my shopping will average out to ￡150 per week...
That's ￡156,000 add that to the ￡200,000 and we have a grand total of ￡356,000 that's more than a third of a million pounds...
Now if the staff in that supermarket understood the value of my custom do you think they might be a little more customer service focused?
No longer am I a pain in the butt asking where they've moved xyz to...
? I am a valuable resource...
? I am helping keep the business functional...
? I am increasing the profits of the business...
? I am helping to keep people in jobs...
If you've never done this exercise I highly recommend it...
I suggest you do it with your team to help them understand just what that pain-in-the-butt customer is worth to your business...
If you need any help give me a shout I'm here to help...
Supporting Law Firms Owners to Increase Profits by ￡50,000 in 6 Months, Transform their Firms into Highly Profitable & Valuable Businesses, & Prepare for Succession/ Exit using the P.R.O.F.I.T System.
9 个月Brilliant article Susan Gallagher, my question is, do you think the staff even recognise their repeat customers? If they have regular staff on the till they may recognise you and build a relationship, but if we're all using the self-checkout how are "connections" or "relationships" built? Just a thought