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Tags >> customer service

The Lifetime Value of a Customer

Posted by: broshe

Tagged in: customer service

happyshopper

Customers come and go. This is just one of the ups and downs of owning a business. You are aware that you may not always keep the same customers for years. However, as a small business, you will usually have a strong base of loyal customers who continue to visit your business for years. These people are often called lifetime customers, and they are extremely vital to the health of a business.

Why are lifetime customers so important when my actual customer base changes year to year? The reason that these loyal customers are so important is actually twofold. First of all, think about the time when your liquid customer base has been at its lowest point. What supported your business during those times? Yes, it was your lifetime customers.

The great thing about loyal customers is that they will stick with you.

The second part of this answer has to do with reputation. One thing about people is that they will tell other people about their experiences. Your loyal customers are most likely very happy to tell other people about what a good experience they had with your business. This can lead to many new customers for you.

How can I sustain a good base of lifetime customers? The answer is very simple. Provide them with an experience that makes them want to continually come back to your business. Your customers should be able to walk away from your business each and every time, happy with their experience.
You can achieve such an experience for your customers by making sure that your employees treat everyone who walks through the door with respect and with a professional attitude. In addition, your employees should be thoroughly knowledgeable of any product or service you sell.

Is there anything extra I can do to keep customers? Loyalty programs can be a great way to give a little extra to your lifetime customers. You can provide them with a discount after a certain number of years as your customer. You could provide special promotions if the customer refers knew customer to you. There are any number of things you can do to let your lifetime customers know that you appreciate them.

There is a major lifetime value to your customers. While you have to expect some customers to come and go, you can still make sure to take care of your lifetime customers by providing them with excellent service and an amount of appreciation.


4937667781_218d49e535_mWhile any business owner would say that customer satisfaction is important, can they really say why? Some people may shrug their shoulders and respond that customer satisfaction is important "just because." However, there are some very real reasons why you need to make sure your customers are happy. 


Remember that a very large part of your business is repeat business. If your customers walk away unhappy, then chances are, they will look for business elsewhere. You will need a string repeat business base so that the comings and goings of new and short-term customers does not have too much of an impact. 


In addition, one of the biggest ways to grow or destroy your business is through word of mouth. If quite a few of your customers are unhappy with your company, they will talk about it to anyone who will listen. Alternatively, if your customers are happy, they will tell people as well. You could gain or lose new customers just on a word from another. 


Happy customers buy more. If your customers come into your business and they are satisfied with the service, the quality, and the prices, they are much more likely to spend more money with you. If they are unhappy, they will most likely purchase what they have to and then leave. 


Now that you can see just why customer satisfaction is important, you will need to consider ways that you can raise the satisfaction of your own customers. 


The first step is to analyze your customers and your business. Look for the things that may be making customers unhappy. The first step to improving customer service and improving customer satisfaction is to identify any problems.


Next, look for ways to correct any problems. You may even want to ask customers. You could present surveys or just straight out ask questions like, "What could I do to make your experience better?" This way, you are getting your customers involved and you can begin to see things from their perspective.

 
Finally, remain professional and consistent at all times. While you want to make sure your customers are satisfied, you must keep in mound that, at times, you will have to deal with an unhappy customer. You cannot make everyone happy all of the time. When the unfortunate events happen, make sure to approach them with levelheadedness and a large amount of professionalism.


Your customers will often become much more satisfied when their problem or concern was addressed in a professional and courteous way.