What's the value of a client?

This question is normally answered simply by looking at the average order value on a first purchase. For those who live in the world of marketing however, the answer is a little more complex… but well worth exploring!

Lifetime value is not just the first transaction. It’s every transaction that you will get from a client. Every repeat order, every cross and up-sell too.

As an example...

One MOT might be ï¿¡54, but every year for the rest of the driving lifetime?

Add in the annual vehicle service at ï¿¡250 per year

Set of new tyres, Sir? Add another ï¿¡200 per year

And so on and so on.

The value of a client is only limited by the breadth of their requirement, and your capability to build trust, communicate and uncover those needs and deliver on them well enough to give them no reason to shop elsewhere.

And that’s before we even get onto thinking about the value brought when they refer you to their family and friends or promote you positively with online endorsement or review.

The question of value is often overlooked, and it draws into sharp focus that marketing requires much more than first time new clients with a starting requirement. Managing that lifetime value is critical to long term business profits!

If you'd like to learn more about client lifetime value and how you can maximise it through strategic marketing actions... do get in touch. You can reach me at tim@growth-by-design.co.uk