Comments on: Lifetime Value Of A Customer

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By: Christie Lewis

Christie Lewis — Fri, 05 Mar 2010 01:23:16 +0000

Thanks for pointing this out, Anon.

I don’t think it sounds nit-picky at all (grammatical errors are a pet peeve of mine, so I’m actually a little embarrassed). I know some of my friends will just love seeing your comment as I tend to pull apart their punctuation and spelling on a regular basis. I can’t deny them this little pleasure by not publishing your comment.

Thanks again for the heads up!

By: Christie Lewis

Christie Lewis — Fri, 05 Mar 2010 01:15:04 +0000

Thanks for your comments, Phil. You bring up some good points.

the real lifetime value of the customer is also in how much business they generate for you

You are absolutely right! I know that in our business, some of our top clients are not ‘big clients’ in any traditional sense. Instead, they are those people who voluntarily love to enthuse about us to friends and family.

As a direct result of some of our “basic needs” clients receiving A-grade service, we’ve picked up a considerable number of larger clients based on their enthusiastic recomendations. The value of these advocates (especially to small business) far exceeds any immediate monetary reward they might provide.

It is so important to nurture genuine client relationships as it naturally seems to create business evangelists… and once you have them, they are worth looking after!

By: Anon

Anon — Thu, 04 Mar 2010 16:09:25 +0000

Sorry, this is going to sound nit-picky and you can go ahead and delete this comment once you’ve read it but:

“This means that one of the most affective ways of marketing your business is to increase the number of visits that your long-term customers make to your premises, as this will add to the lifetime value of the customer.”

I believe you mean “effective” not “affective.”

By: Phil Richards

Phil Richards — Thu, 04 Mar 2010 13:29:30 +0000

The lifetime value of a client is a great perspective to take, especially I think when you are in those situations that make you question whether it is worth doing business with someone !
It occurred also to me, within the context of your reference to referrals, that the real lifetime value of the customer is also in how much business they generate for you, by talking about the valued relationship they have with you.
The customer’s real value then, may be far in excess of what they pay you.

Phil