"It cost six times more to sell something to a prospect than to sell that same thing to a customer." -Jay Conrad Levinson
So what is the real value of a customer? It’s the profits you earn from a customer over the span of time that they are your customer. It’s not just the profits from that first sale.
If your average profit from a customer sale is $100.00 dollars and your average customer buys from you for five times, the value of a customer is $500.00. And that’s not even counting the value of their word-of-mouth referrals.
There are two important marketing strategies in this information:
1. You should treat customers like a $500.00 dollar customer, not a $100.00 dollar customer.
2. The amount of money you spend on marketing to acquire a new customer is not based on the $100.00 dollar profit of one sale, but the $500.00 dollar lifetime profit or “Value of a Customer”.
Dale Richardson
Certified Guerrilla Marketing Coach
So what is the real value of a customer? It’s the profits you earn from a customer over the span of time that they are your customer. It’s not just the profits from that first sale.
If your average profit from a customer sale is $100.00 dollars and your average customer buys from you for five times, the value of a customer is $500.00. And that’s not even counting the value of their word-of-mouth referrals.
There are two important marketing strategies in this information:
1. You should treat customers like a $500.00 dollar customer, not a $100.00 dollar customer.
2. The amount of money you spend on marketing to acquire a new customer is not based on the $100.00 dollar profit of one sale, but the $500.00 dollar lifetime profit or “Value of a Customer”.
Dale Richardson
Certified Guerrilla Marketing Coach
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