Newspaper article The Observer (Gladstone, Australia)

Customers for Lifetime Are Goldmine

Newspaper article The Observer (Gladstone, Australia)

Customers for Lifetime Are Goldmine

Article excerpt

Byline: JUDY REYNOLDS 10X Co The Business X-Factor

CHRISTMAS is a favourite time of the year for many, business owners included.

Sure, it usually gets a little hectic, but that's exactly why we love it Co Christmas sales can be so high that if it were Christmas all year round, we'd be enjoying the holiday season on our own yacht in the Whitsundays right now. Sometimes, however, we're so focused on our revenue at this time of the year, it's easy to ignore the other opportunities that present so readily during this period. Christmas brings customers to your business like no other event or promotion can Co so why not take advantage of the increased foot-traffic, and use Christmas to start building those lifetime value customer relationships that every successful business is dependent on? For those of you not familiar with the concept of lifetime customers, here's the rundown: a lifetime customer is simply one that has bought from your business, loves what you've done, and comes back, time and time again. Let's say that the average life of a business is 25 years. You have 100 loyal customers that buy from you 20 times each year.

100 customers x 20 times = 2000 purchases. This can potentially mean that you have 2000 purchases a year. Over 25 years this could mean a potential 50,000 purchases/sales.

25 years x 2000 purchases = 50,000 sales/purchases. This is the lifetime value of your customers, and this is why the concept of lifetime customers can be a goldmine.

Simply put, customers who offer high lifetime value are more profitable than other customers, because they spend more at every transaction, and purchase more often. In other words, they are a business owner's dream. So how do you get these lifetime customers? Capturing the details of customers to set these relationships in motion is something that can be easily done at this time of the year, and should in fact be a priority at this busy time. After all, a Christmas full of sales isn't nearly as valuable as a handful of lifetime customers. …

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