The Lifetime Value of a Customer

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.