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Casual Articles - The Value of a Customer
It might have come your attention that finding a job this days is not easy as it used to be. Many companies are downsizing, other are outsourcing to foreign countries and many employees and professionals are running out of job. That's why we need work
Bosses, also called coaches, are a fact of life unless you are self employed. In that case, your clients and your potential clients are your bosses. But in business, non-profits and organizations, bosses are a reality whether you are a clerk in a mom
You need to determine what the value of a customer is to your company. Answer the following questions:
How much will the average customer spend with you per year?
A = _____________
If you provide quality service and products, how many years can you expect to keep a customer ?
B = _____________
What is your gross profit, as a percentage of revenues?
C = _____________
The value (V) of a customer is:
V = A X B X C
We learned with our network consulting company that the average life of a customer was about 2 ? years and the average yearly expenditure was around $10,000. With a gross margin of 35%, each client was worth $8750 to the company.
$10,000 X 2.5 * .35 = $8750
If you haven’t used this simple formula before, it can totally change how you view customer acquisition, retention and customer service. Normally you’ll want to spend about 10% of current or projected revenues on customer acquisiti
How do you get everyone on board the change train that is gaining speed and heading out of the station? How do you get your people to, not only go through the motions, but also actually “buy into” the changes that are necessary? People’s resistance to
A = _____________
If you provide quality service and products, how many years can you expect to keep a customer ?
B = _____________
What is your gross profit, as a percentage of revenues?
C = _____________
The value (V) of a customer is:
V = A X B X C
We learned with our network consulting company that the average life of a customer was about 2 ? years and the average yearly expenditure was around $10,000. With a gross margin of 35%, each client was worth $8750 to the company.
$10,000 X 2.5 * .35 = $8750
If you haven’t used this simple formula before, it can totally change how you view customer acquisition, retention and customer service. Normally you’ll want to spend about 10% of current or projected revenues on customer acquisit
As a Christian author, you face the challenge of gaining maximum exposure for your book on a limited budget. Not to worry. Keep reading and I’ll show you nine sure ways to quickly increase website traffic, maximize exposure and sell more books.<
C = _____________
The value (V) of a customer is:
V = A X B X C
We learned with our network consulting company that the average life of a customer was about 2 ? years and the average yearly expenditure was around $10,000. With a gross margin of 35%, each client was worth $8750 to the company.
$10,000 X 2.5 * .35 = $8750
If you haven’t used this simple formula before, it can totally change how you view customer acquisition, retention and customer service. Normally you’ll want to spend about 10% of current or projected revenues on customer acquisit
You already have a particular group of people in mind that you believe God has called you to influence, right? Of course you do. Obviously, in order to gain support for your ministry or business, you must identify your base and then find creative ways
$10,000 X 2.5 * .35 = $8750
If you haven’t used this simple formula before, it can totally change how you view customer acquisition, retention and customer service. Normally you’ll want to spend about 10% of current or projected revenues on customer acquisit
If you are on the hunt for a professional conference organizer and are not sure where to start looking, consider the internet as a source of valuable information, and a good method to find a company specializing in conference and event management. On t
A valuable concept to learn and leverage is to go to great lengths to keep a good customer. The simplest and least intensive marketing efforts are those that you do for existing customers. Stay in contact, educate them on the excellent services you have provided them and the value proposition that you offer.
Close Ratios
The next important parameter is to calculate your close ratio. This means for every prospect you talk to, how many become customers? We had a close ratio of around 25%. With the above example, assuming a marketing budget of 10% of gross revenues per customer, we had $1500 to work with. With a 25% close ratio, that meant we could spend on average $375 f
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