Customer Lifetime Value - The Key To Maximizing Your Profits!Get The Edge Marketing on theedgemarketing.com. Customer Lifetime Value - The Key To Maximizing Your Profits! topic will increase your understanding on The Edge Marketing. We at theedgemarketing.com only provide news, articles, information in The Edge Marketing. The Edge Marketing at theedgemarketing.com provides the most up to date news and articles. If you have questions please do not hesitate to contact us.
The greatest asset to your business is your Customer, specifically, your Customer Lifetime Value. In my many years in Sales and Marketing, I've met many CEOs and business owners who don't have much clue as to what Customer Lifetime Value is, much less its importance and the impact it has on their bottomline. To most of them, what matters most is to increase revenue by continuously acquiring new one-shot customers. This is one of the fatal mistakes that many business owners make; it's a sad scenario, but it's also the reality. Let me tell you something: it'll cost you 5 times more to attract a new customer than it is to bring one of your past customers back to you. I don't know you personally, but if you're a smart business owner, you'll understand that every cent you invest in advertising is going towards acquiring new customers. You'll also realise that once you've acquired the customers, you just can't afford to let them go. ---------------------------------- Customer Lifetime Value is defined as the total value, in monetary terms, of your average customers spanning the entire period that these customers are likely to do business with you. It's the potential contribution of your customers to your business over a period of time. Here's how to calculate your Customer Lifetime Value: 1). Let's say you've 2,000 steady customers and these customers remain with you for an average of two years; for the past two years, your net profit was $700,000. The Customer Lifetime Value can be calculated as: $700,000/2,000 = $350. What this means is that over an average customer lifespan of two years, each new customer you could acquire and keep is worth $350 to you in profits. 2). If you do not have the actual figures, you'll have to estimate. As the Customer Lifetime Value will have a significant impact on your bottomline, my advice is that you be prudent and conservative in your estimation. ---------------------------- Lifetime Customer Value is important to you and your business for the following reasons: 1). Knowing the Lifetime Value of your customers is crucial to you and your business as it serves as a benchmark without which you'll be groping in the dark. When you know the Lifetime Value of your customers, you can determine how much time, effort and money you can afford to invest to acquire that customer in the first instance. In other words, you can invest more today to reap a much larger profits later down the road as long as your cashflow is healthy and can support it. Every marketing campaign that you undertake costs you money as well as reaping you benefits such as increased sales, enhanced corporate image, etc. But how can you be sure that the benefits would outweigh the costs or investments? This is where knowing the Customer Lifetime Value is so powerful - it helps you to determine this even before you launch your marketing campaign. 2). When you realize that customers are actually an ongoing stream of revenue as opposed to a one-shot sale, you can re-focus your marketing efforts. Instead of contantly struggling to acquire more and more new customers, you can now begin to focus on keeping your existing customers longer and selling to them repeatedly, in other words, repeat sales. You may spend more like making stronger and more attractive offers than your competition in acquiring new customers now who will be your money spinners tomorrow. This makes sense because you now know that on average you'll more than make it back over the years that the customers are with you and therefore you could afford to break even or even lose money now in acquiring the new customers. Start shifting your focus to Customer Lifetime Value and maximise your profits today! Start to have a proper understanding of Customer Lifetime Value because it's key to the success of your business. It'll allow you to acquire more customers than your competition through better and more attractive offers; it'll dramatically increase your bottomline through more repeat sales and shoot your profits through the roof. Type At Home - Converts All Traffic Ez. - www.type-at-home.com/affiliates.html - Stop wasting your time for Tiny Profits! Try it and See for Yourself! Dlguard - File Download Protection. - Protect your time and your money: stop download thieves and build customer lists. Every serious seller needs this! Article Index: | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 | 22 | 23 | 24 | 25 | 26 | 27 | 28 | 29 | 30 | 31 | 32 | 33 | 34 | 35 | 36 | 37 | 38 | 39 | 40 | 41 | 42 | 43 | 44 | 45 | 46 | 47 | 48 | 49 | 50 | 51 | 52 | 53 | 54 | 55 | 56 | 57 | 58 | 59 | 60 | 61 | 62 | 63 | 64 | 65 | 66 | 67 | 68 | 69 | 70 | 71 | 72 | 73 | 74 | 75 | 76 | 77 | 78 | 79 | 80 | 81 | 82 | 83 | 84 | 85 | 86 | 87 | 88 | 89 | 90 | 91 | 92 | 93 | 94 | 95 | 96 | 97 | 98 | 99 | 100 |
Advice Home Business Technology Online Advertising Motivational Internet Marketing SEO Help Online Games Science Articles Happiness More Articles:1. Marketing in the Face of Disaster: 7 Guidelines for Success By Ellen Britt In the wake of Hurricane Katrina, many businesses are hesitating to keep clients apprised of new offerings, perhaps afraid that they will appear insensitive to the enormous human suffering that is going on along the United States Gulf coast. The impact of this devastation will undoubtedly continue for years to come, so many business owners are understandably nervous.But of course, life, as well as business, goes on and you must continue t… 2. 6 Simple Ways to Determine Which Marketing Ideas Are Best for Your Business By Jennifer McCay Did something catch your eye in a direct mailing this past week? Have you recently gone to a website and encountered something entirely new that caught your attention? Did a friend of yours try out a new marketing idea and generate a few thousand dollars of extra business overnight?As a small business owner, it's all too easy to get caught up in the hype of new marketing techniques that promise quick rewards for little cash. I'll even admit tha… 3. Make Out Marketing By Lee Raito What is the single biggest fear of teenagers, business owners and CEO’s alike?The answer is simple. Making out for the first time, with an attractive partner or customer you really want to be with.The jitters, the butterflies, that welling excitement building in the brain, are eerily similar whether you are talking about business or that first make out session.All goes well and it’s magic? Screw it up, and you may never see that customer, I mea… 4. Create Your Own Rumors By Gina Novelle A consultant new in the city asked me how I managed to get business so fast. Working for that marketing company definitely gave me a jump start. That's because I already knew about press releases. Only in business a few months and I already had been in two of the local papers. However, it was my male mentors who introduced me to telemarketing.At the suggestion of calling strangers on the phone was enough to terrify me. There was no way I c… |