What’s a client really worth to your business? It depends on whether you take a transactional or long term view.
Every new client costs you time, money and effort to bring in. Which erodes your profit.
Conversely once someone has bought once and you’ve established a level of trust, it’s 7 to 9 times less expensive to keep selling to them.
On-going or repeat clients are therefore significantly more profitable as time goes on.
With that in mind, recency , frequency and amount spent should be 3 critical numbers at top of mind.
When was the last time this client bought. How often do they come back and how much do they spend each time.
Use this metric to determine which clients should be getting your top attention and which ones could be elevated.
Be strategic. Think longer term. What additional products or services would enhance the solution you provide?
What would get your clients coming back, possibly for years? Not addressing this is leaving money on the table and ultimately is not serving your client.
I’ve created a sophisticated calculator which will tell you much every client could be worth to you. You can access it here.
The results may well give you a completely new appreciation for your clients.
Once again, click here for the calculator.